Shoptalk 2019 – Merging the physical and digital to understand retail motivations
With more consumers shopping online than ever (at least 70% percent of consumers engage with e-commerce) retailers need to adapt by improving their online presence and digital marketing strategies.
Kitewheel’s 2018 State of the Customer Journey Report identified that total journey interactions surpassed three billion in 2017, compared to just 400 million in 2014.
As customers encounter more and more touchpoints on their journey to conversion, merging brick-and-mortar stores with the online realm, and putting in place a digital strategy to support that is a must for retailers who want to stay competitive.
Challenges to overcome
A lack of offline and online consolidation makes it difficult for retailers to assess marketing performance, and segment and target specific groups of customers effectively. With 86% of consumers stating that customer experience influences their purchasing decisions, effective personalization is now crucial for long-term success.
What’s more, existing, outdated, attribution models such as first or last-click are expensive, and they don’t make the most of an organization’s customer data, with the tendency to over or under value touchpoints based solely on their position in the conversion funnel. Traditional single-click attribution also has a very slow rate of time-to-value, with outdated attribution algorithms leading to inconsistent results and a lack of trust in insights.
Through merging brick-and-mortar retail experiences with e-commerce, businesses can move forward, using data-driven attribution (DDA) to accurately demonstrate the performance of different marketing channels. DDA can also identify how offline and online channels interact, showing how physical stores drive e-commerce (or vice versa) and calculating customer lifetime value and acquisition cost.
However, retailers with both a physical and online presence struggle to manage their online and offline data, with information siloed across their business and Martech vendors. This makes it difficult for marketers to extract the insights they need to make strategic decisions, spending most of their time searching for or cleaning data.
A holistic view of the customer experience
Fospha’s bespoke customer data platform (CDP), built in collaboration with our clients, creates a single, holistic view of the customer journey; automatically aggregating, cleaning, and merging data from a wide range of sources. This, combined with effective visualizations which are ideal for distributing easily digestible insights, leaves marketing teams with more time for strategy.
With an ever-increasing number of touchpoints, it can be difficult to pinpoint which marketing channel held the most responsibility for a conversion. Fospha’s data-driven multi-touch attribution (MTA) model uses machine learning to stitch together on and offline data points, creating a singular customer journey that accurately demonstrates the value of each marketing channel.
With a more unified view, marketers can then optimize marketing spend, prioritizing channels with the highest performance. The ability to integrate a variety of Martech systems ensures that Fospha’s modern attribution models enhance existing investments, turning siloed datasets into important insights.
Attribution also needs to be agile – a one-size-fits-all approach isn’t enough to keep pace with rapid changes in the industry. Solutions must be customized to suit individual businesses but sustainable enough to survive a future filled with disruption and change (capable of ingesting data from channels like voice, chat bots, connected TV and smart cars, when they emerge).
As the number of consumer touchpoints continues to increase, marketers need to stop relying on guesswork and digitize. Consolidating your consumer data doesn’t need to be difficult – with the right data-driven tools, getting to the bottom of customer motivations can be simple and effective, providing a disruptive solution that demonstrates clear value to your business.