One of the most common questions we’re asked is about the value and impact that online digital channels really have on the in-store retail foot traffic and revenue.
As we approach the busiest time of year for retailers, we thought it might be helpful to share some of the key messages and findings we often share to help clients better understand (and convincing their board) the role of online on their bottom line and business.
Key online shopping behaviour stats:
- 87% of shoppers look for information online before visiting a store
- 79% of shoppers look for information online while visiting a store
- 35% of shoppers look for information online after visiting a store
- 51% of consumers have purchased from a brand, other than the one they intended, because the information provided online was useful
Online channels drive 42% of in store sales!
- Australians are shopping online in 2021, at a 12% - 15% increase compared to 2020; where a significant spike in online behaviour was reported
- During 2020 >1M households shopped online every month
- Despite the increase in online activity, online purchases remain <10% of total retail revenue, therefore validating the need for Brand’s to maintain a strong online presence and touchpoints, while continuing to drive and grow in store foot traffic and sales
- According to Google, multi-channel shoppers have a 30% higher lifetime value, compared to those who interact through only one channel
The prediction of a post-COVID boom:
- After the GFC of 2008, there was a significant boom in eCommerce, which maintained through the decade of 2010 – 2019.
- Industry experts are predicting that with the recessions brought on by COVID-19, eCommerce would once again boom and maintain in a post-pandemic world
- Since the inception of lockdowns and a changed way of life, the growth in eCommerce has already been significant
The consumer journey is rarely linear:
- Consumers are now being prompted by triggers (or touch points), then entering a process of exploration and evaluation
- Brands cannot rely solely on consumer loyalty and remaining the first choice, as more and more brands compete for attention in a competitive digital landscape
- “A search engine is the most used and most useful touchpoint throughout the journey.” – Google / Kantar, The Journey Reshaped
- In 2001, consumers would use approx. 2 touch points: with this increasing to 6 touchpoints in 2017
- This has reportedly increased, and some suggest that 7 – 8 touchpoints are required before a Brand will enter the buyer’s (consciously aware) consideration
Above data is from Google / Ipsos study; Google / Kantar study; Australia Post; ABS; Oracle.
Latest tips and trends:
- Personalise offers and incentives: ‘Mega Sales’ periods are becoming noisier than ever, for brands who cannot seek to dominate through increased budgets, personalised content and advertising is key.
- Create dynamic and entertaining content: according to the 2021 Facebook Christmas marketing guide leading brands are combining traditional in-store shopping with social media platforms and entertaining online content – ‘shoppertainment’.
- Smart shopping experiences: us live product catalogues and dynamic ads on social media platforms to help consumers connect, discover and engage with your brand and products in a variety of automated and targeted ways.
- Seamless omni-channel experiences: align your in-store point of sale data with online campaigns to create a direct connection between consumers’ in-store and online behaviour.
Is your business ready for Christmas 2021?
Give us a call to find the ‘sweet spot’ between top of funnel engagement and bottom of funnel conversion and create more opportunities for discovery and shopping! Call 1300 818 188 today.
David Bedggood – Director, Client Strategy & Services
David has 5 years of digital marketing experience working across a range of industries and business types. He is passionate about using strategy to help clients more effectively communicate with their market. He is a proud father, Collingwood supporter, a DIY weekend warrior and has also been known to show off a card trick to two. Connect with David on LinkedIn.
Johnathon Salamon – Client Strategy Manager
Johnathon oversees strategy development and implementation across a range of digital areas and clients. He brings an in-depth understanding of search, social, CRM and marketing automation and loves to connect new world tech with old world strategy to cut through the noise. On the weekends, Johnathon enjoys a Negroni, good music and NBA. Connect with Johnathon on LinkedIn.