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performance retail handbook



Retailers around the globe keenly understand the intensity, fervor, insight, and data necessary to stay ahead of the competition. Unlimited shelf actions, revolutions in order and delivery infrastructure, “e”, “m”, and “f” commerce, have all propelled the channel into a turbulent state, with retailers struggling to keep pace with shifting expectations and product or service demands. Retail customers (Participants) have high expectations and demand unprecedented transparency as they actively seek out dynamic, personalized experiences. Fortunately, Performics has extensive experience in the retail space and we have an opportunity to capitalize on this to become the global premier retail performance agency. By analyzing historical campaign case studies and success, we have developed a consistent and repeatable framework for achieving marketing performance. Performance

For us, Performance Marketing is about discovery, empowerment, and connection. Participation

Driving performance in this new retail world means identifying, planning for, and optimizing against what motivates Participants to choose. It is about matching-and-pacing to their needs, increasing the turn, be rewarded with incremental performance conversions and loyalty. This handbook is intended to provide you with a foundation of ideas, tools, and methodologies to win At Performics, our goal is to be your trusted partner and to bring our expertise, ideas, and passion to help you exceed your business goals. Thank you,

Daina Middleton Performics Global CEO


Performance Retail Moving at the speed of retail is a challenge for even the savviest of marketers. With such pronounced changes in customer behavior, shopping habits, technology, and commerce capability, it feels as though we are reinventing retail every season. We have put together this handbook to provide you with a framework to tackle today’s biggest retail challenges. With all its complexity it is critical to not become overwhelmed, and to remember that success for tosimple pillars to capture the fundamental elements of Retail Success and to form the “chapters� of this handbook.

Visibility Integrated Media Integrated, participant-centered marketing that moves at the speed of Retail, taking into account dynamic market forces.

Optimization Actionable Analytics Integrated business intelligence and customized dashboards that integrate your entire data set to make more informed, holistic decisions.

Relevancy Engaging Experiences Participant-optimized seamless experiences across multi-screens to drive shopping, buying and sharing.

Conversion Dynamic Merchandising match pricing, marketing, and inventory tailored to evolving participant behaviors

2012: B2C eCommerce sales topped $1 trillion for the first time. Growth was at 21.1%, with expected 18.3% growth in 2013.1 2


Within the US, online retail has enormous potential for growth, capturing only 8% of total retail sales, but growing faster compared to overall retail. In 2013, the National Retail Foundation expects sales to increase 3.4% (slowest growth since 2010), while online growth is expected at 14.8%. At the same time, digital buyer penetration at 73% is leading saturation levels. 3

With high online retail penetration in northern Europe (foremost UK and Germany), eCommerce is projected to still outpace physical retail with greater emphasis on multiple channels. The southern European markets are to have the fastest growth rates as they mature to adopt online shopping into the norm. 4

Digital buyer penetration in LATAM is one third of total Internet users, but Argentina and Brazil are pulling up quickly (with levels at 45.6% and 36% respectively) with the rising middle classes focusing on price savings. 5

This year marks a turning point where the

1. “Ecommerce Sales Topped $1 Trillion for First Time in 2012” (eMarketer, Feb. 2013) 2. “Pre-Holiday 2012 Consumer Intentions” (Google/Ipsos OTX, Oct 2012) 3. ”Retail Tech Sector Bulletin” (Marcum Cronus, Feb.2013)

ca as world’s No. 1 market for B2C eCommerce sales at 33.4%, with North America at 31.5%. 6

4. “Brazil Ecommerce: Sports, Travel and Cheap Retail Maintain the Market’s Momentum” (eMarketer, March 2013) 5. “European Online Retail Forecast, 2012 to 2017” (Forrester, March 2013) 6. “2013 Digital Trends in Latin America” (Digital Media Bloggers, June 2013)


retail realities

WITH THE EXPLOSION OF MOBILE DEVICES and the ubiquitous usage of social networks, brand retail stratetegies have become increasingly focused on connecting to and inspiring participant behavior. Business success in retail is largely dependent on brands providing relevant, personalized experiences to help participants throughout their shopping journeys. Given this, we believe the following are some key market realities that brands should be mindful of when crafting their business and marketing strategies.


The funnel has been replaced with a non-linear, multi-touchpoint process Increased consumption of media across channels Need for visibility across a multitude of media Experience directly personalized to participant

Mobile is the First Online Channel •

Participants are accessing the Internet through a

• •

Get the most out of every pixel Integrate strategies across devices

Collaborative Content is King • •

Participants driven to content creation and sharing through social media Brands need to join in the conversation as publishers of sharable content to gain access to trusted networks

Data is the Marketing Currency • •

Data allows brands to navigate fragmented media channels, touchpoints and evolving participant behavior Need for integrated analytics across your business, web analytics and cross-channel performance strategies





the new customer journey a fractured digital retail journey




Sees a good sale on Facebook.


Checks nearest store hours.


Clicks on a paid search ad for Loft.



Sees a print ad in InStyle.

Googles “spring dresses�.

Buys dress.

mapping your own participant journey Chances are your participant’s journey looks nothing like the above. In fact, it’s likely that no one shopper their way to the checkout counter the same way as his or her neighbor. Although each journey is unique, ing what and where to focus your attention. Here are three key areas to help you follow alongside your and where to focus your attention. Here are three key areas to help you follow alongside your participants’ participants’ fractured journeys.1 1 fractured journeys.


build a participant persona • •

Who is your target participant? Hone in on their background and needs.


What is the thought process at each step and touchpoint?




Where are participants entering or exiting? Identify pain points as well as times of potential changes in shopping preferences.

1. “How To Map Your Customer Experience Ecosystem” (Forrester, Feb-May 2013)

feeds and affiliates

THE POWER OF THIRD PARTIES product reach and connect with participants in real time. Product Listing Ads, Comparison Shopping En-




feeds What is a feed? product information attached to attributes such as product assortment, product info, promo

Feeds help harness the massive reach of shopping engines, maxiipants otherwise removed from the brand. The customizable feeds lend increase conversions, and maximize revenue online. Feeds make for easier data integration, deep reporting and product level insights.

How are they used/experienced by the participant? Product Feeds stock the virtual aisles of product listing ads, shopping engines, and marketplaces. Participants will arrive looking for the best value and price across brands.

affiliates keter that drives sales to the ates exist in eCommerce and are typically compensated based on performance, such as per sale or lead. This creates direct accountability for the performance of the media.

How are they used/experienced by the participant? participants increasingly moving to vertical sites for discovery, shoppers ative tools, with 57% of online shoppers more likely to buy a product they’ve seen displayed on multiple websites, than one solely on retailer or brand sites.2

their reach across the SERP, connect with shoppers looking for than three quarters of online buyers additionally research two to three non-retailer websites, with 65% also preferring sites featuring multiple retailers. 1

engaging e

creating meaning alo


ong the touchpoints

social implications

Questioned in its initially touted potential as a “direct sell” channel, social media has altered the relationship between participants and brands by facilitating open dynamic interactions and creating networks 1 sites, a recent KPMG survey showed that 71% of retailers believed that social media was having a significant impact on their business.2 In fact, just over half of retail respondents to a Forrester survey said they will spend more on Facebook in the coming year, with 31% spending more on Pinterest, 25% on Twitter, 25% on YouTube and 23% on Instagram.3 For retailers, social media functions on three important levels.

crm & relationship building The social network space is ideal for transparency and to engage participants to demonstrate immediate attention to their needs. Social media also provides brands an opportunity to build and grow through direct participant interactions, as well as connecting participants to other branded assets in their paid, earned, and owned media eco-system.

peer influenced research Participants are moving beyond traditional search results to discover alternative (human) authority for crowd-sourced decision making. Today, participants are increasingly dependent on people-powered search results and answer platforms that feature context-rich human opinion, like Amazon, TripAdvisor, Yelp, Quora, Twitter and Facebook.

direct action sales Consider the context when placing sales-focused content on your social network page. On Facebook and Twitter, advertising is often considered an invasion. The visually-oriented nature of Pinterest encourages users to directly engage with retailers and their products. Shoppers who come to your site from Pinterest are 10% more likely to make a purchase compared to those who arrive from other social sites. More than 40% of shoppers have made purchases on social media sites and 76% even want brands to advertise through social media more 4 – signaling a desire for the personalized, participant-focused engagement promised through social media.

in action: store pins Nordstrom has incorporated Pinterest into in-store displays to engage its large fanbase of 4.5 million followers. The initiative is meant to touch upon both CRM and sales. According to a Nordstrom spokesperson, “We hope it adds to our engagement with the community and ultimately enables us to sell more as well.” 5

2. ”2013 Retail Outlook Survey” (KPMG, June 2013) 5. Nordstrom Takes Pinterest Engagement To New Level, Turns Most Pinned Items Into In-Store Displays (Marketing Land July 2013)

mobile experiences

As online mobile usage continues its growth both globally and stateside, brands need to grow and develop their planning and mobile strategies alongside. Planning for a mobile strategy is more than just responsive design or having a mobile website; it requires brands to be broader in vision and plan for experiences. Mobile planning demands that brands think meaningfully about the ways in which their from identifying your audience’s mobile needs and demands. Furthermore, mobile planning requires understanding how those needs and demands may be content- or context-driven and to strategize accordingly. Content-driven mobile planning is focused on ensuring that all relevant paid, earned, and owned content is accessible, designed, and usable via a mobile device.

Content Driven Key Elements: Mobile SERPs Gateways: Search Engines, PPC, Product Ads, Click to Call, Downloads, Site Links Networks:

now mobile search

Mobile Variables Highly Personal Device Fragmentation Location / Geo Aware Website & App Usability

Context Driven Key Elements: Mobile Data Feeds

Devices: Smartphones, Tablets, Basic Phone

Data / Media Rich

Gateways: Voice, QRC, Scanning, SMS, App Stores, Search Engines, Product Ads, PPC, LoNetworks: Social Networks, Third Party Apps, UGC Devices: Cars, M2M, Any Screen

next mobile search

personalized digital strategies

Participants are not only demanding their interactions with branded content and digital properties to pectations for personalized digital experiences. They are searching for experiences that enhance their lives in big and small ways, such as saving time, helping them make the right choices, and getting where they’re going faster, gestures that demonstrate that the brand understands its audience and is commitBut digital experiences don’t just have to live online. In fact, it’s better that they cross over and bridge next year.)1 Whether it’s employees using iPhones to create “mobile” checkout lanes, or apps designed to help people visualize a new couch in their home, personalized digital experiences can create delightful touchpoints along a participant’s purchase path.

engage participant imagination Engage the participant by helping them imagine using your brand. Intel partnered with Adidas, HSN, and Macy’s to develop virtual interactive screens. Adidas launched its Virtual Footwear Walls in 2013. Macy’s Beauty Spot kiosk aimed to similarly provide an “endless aisle” enhanced personalized shopping experience. HSN installed a digital pizza-making game that gave the 2

enhance in-store experience Neiman Marcus partnered with Signature to create NM Service, an app that syncs shoppers and associates.3

ENABLE LOYAL CUSTOMERS Rethink the loyalty card by personalizing the experience through devices, digital tech. their usual discounts, actually saving the retailer costs on promotions. 5.4 million house4

1. ”2013 Retail Outlook Survey” (KPMG, June 2013) 2. “StoresTurn Shopping Into a Virtual Reality” (VR News, February 2012) 4. “Just U Could End Print Ads Safeway Says” (Supermarketing News, Feb 2013) 5. Safeway Image Source:


big data to b

e analytics

big insights

behavior and insight

for most companies, not just retailers. The act of aggregating participant data requires wrestling with technical issues (e.g. big data management, demand forecasting, tagging infrastructures) as well as analysis issues understanding the universe of possibility, while simultaneously knowing what needs to be captured and assessed to drive your brand’s success. While businesses will disagree as to what constitutes the right mix of technical and analytical, there’s no question that the companies that begin tackling these issues faster will drive increases in their audiences’ participation, thus driving overall retail performance. 1



• What are they doing? • Why are they making the choices they’re making? • What are their needs? • Where are they acting? (geographic/channel) • Are we being transparent and ethical on how we’re collecting our data?

• Do we have an established measurement strategy? • Are we collecting the data we need to help us understand how we’re measuring against our goals? • Do we have the right infrastructure in place to collect the data we want and to access it?

• Have we established a learning agenda? • How are we archiving and sharing our learnings (internally and externally)? • How are learnings being applied? • Are they being applied?

in action: target


Andrew Pole, a statistician at Target, revealed the company’s usage of Guest ID tracking to The New York Times in February of 2012.2 Target’s approach was simple and honed in on a key time period and mentality where participants are liable to change shopping habits. Pregnancy. However, the story incited widespread criticism, providing a valuable lesson to retailers on the balance needed between using insights while maintaining good CRM and transparency.

Participants have also adjusted to the realities of online information. PwC found that 73% of survey respondents were willing to exchange personal information when given the right incentives in return.3 Still, for deeper level insights, participants have begun to expect returns for their input. Retailers need sight to their participants as well and view the process as a give-and-take.

1. Use Behavioral Marketing To Up The Ante In The Age Of The Customer: A Winning Strategy And A Path To Higher Gains: A Forrester Consulting Thought Leadership Paper Commissioned By Silverpop (Forrester, May 2013) 2. The New York Times, “How Companies Learn Your Secrets” (February 2012) 3. “The Speed of Life: Consumer Intelligence Series: Consumer Privacy: What are Consumers Willing to Share?” (Pricewaterhouse Coopers,2012)

Imagine your shoppers walking through your doors, loading up a cart, waiting in line, only to then turn and walk out of the store. Though conversion rates vary by vertical, the average for retailers is 4–8%. Half 1 Just as a storefronts needs constant attention to layout and design, your online storefront will need to be optimized for your target participants to make more purchases online. Here are the three steps to conversion optimization.

1 2 3

Conversion Strategy and Planning: building SUCCESSFUL FOUNDATIONS Opportunity audit

Conversion path audit

Competitive review

Recommendation & prioritization

Optimization/ testing roadmap

Conversion IMPLEMENTATION: Testing for Success Also Reveals Shopper Behaviors




ries and recommendations. These tools enable retailers to leverage cesses (like shopping cart, registration forms, and quote tools).

Conversion ANALYSIS: Findings Lead to Greater Insights and ROI Benefits COPY




Savings and value propositions

Cleanup and placement

Hero images and color

Customize based upon audience

The road to conversion optimization is not fast and often takes at least 6–12 months. Longer term testing is often necessary to address improvements to conversions, user engagement, and behavior.

1. “Ecommerce conversion rates” (Smart Insights, June 2013)

conversion optimization

for more information Lindsay Landsberg SVP, Business Development +1 312.739.0670 David Babst Vice President, Business Development +1 312.739.0762


Retail Handbook