3 steps to comparison shopping success

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  • 1. Before we get startedWebinar Subject 1.1 This is a brief (30 minute) webinarExamine the three 2. There are likely a very broad spectrum ofprimary issues expertise levels attending this webinarpreventing many fromachieving success with3. We i h to3 W wish t provide valuable concepts andidl bl t dComparison Shoppingother information to every level of attendeeEnginesDefine the three keyThereforesteps to achieving thatsuccess for yourself. 1. Please post questions to the provided chat, there are technicians monitoring2. Please be patient while we cover some basics or advanced topics3. Please place your phones on MUTE for the courtesy of others

2. Three Steps to Comparison Shopping Engine SuccessWebinar Goals: Examine the three primaryissues preventing many fromachieving success withComparison ShoppingEngines Define the three key steps toachieving that success foryourself.Speaker: Michael Lambert 3. Search Engines vs Comparison Shopping Engines Search EngineSearch Engines attributes: Driven by keywords and web page content When successful, they successful bring researchers to a merchants siteBEST for site andcompany BrandingBranding 4. Search Engines vs Comparison Shopping Engines Comparison Comparison Shopping Engines Shopping Engine attributes: Product Content When successful, they successful bring shoppers to a merchants preferred product pageBEST for productsales.sales 5. Preliminary Information Industry Statistics Statistics:Online Shoppers for year end (USA only)2000: 48 million20% of all internet2003: 90 millionproduct sales occurred2005: 120 millionthrough Comparison2006: 130 million (estimate)Shopping Engines2010: 155 million (estimate, Piper Research)Existing Marketplace:Consumers arriving atUSA, online, non-travel revenues across all shopping destination sites*online storefronts from 2000: $27.3$27 3 billionCSEs average a 25%2003: $68.4 billionhigher order total2005: $109.4 billion2006: $132.0 billion (E) = 3.5% of total retail commerce62% of online shoppers 2010: $225 billion (E) = 5% of total retail commercebuy after visitingshopping destinationsites 20% of online shoppers use shopping comparison sites todayThese shoppers spend 25% more than the average online consumerPercentage of Sales Percentage 62% of online shoppers buy product after visiting shopping destination sitesthrough ShoppingDestination sites isgrowing each year 6. Many merchantsISSUES FOR ONLINE MERCHANTS:abandon one or more1. All shopping destination sites have variousComparison configuration requirementsShopping Engineefforts due to either: ff t d t ith 2.2Time consuming process to custom manage data feeds3.3. Insufficient toolsto create, analyze and manage effectiveInsufficient tools to create, analyze and manage Poor or No CSE MarketingCSE campaignseffective CSE campaignsVision4. High pay-per-click costs and limited marketing ffunds Lack of ability, tools orresources to accomplish 5. Inefficient use of marketing dollars = lower Return onthe CSE Marketing vision Investment (ROI)6. Establishing relationships with shopping destination sites7. Inefficient use of IT staff Other processes could suffer8. 3rd party managed solutions are extremely expensive and require handing over significant control of your company 7. Many merchants becomeyconfused, andoverwhelmed with thequestion of whichComparison ShoppingEngine is Best for them. BestthemThe real issues are:How to re-tool to try anew CSEHow to assess successes ?and failures for each CSEHow to adjust the plan if Howand when necessary********** OR*********** How t optimize the H to ti i thComparison Shopping Engine relationship 8. Before d fi iB f definingComparison ShC iShopping Enginei E ithe three stepsMarketing Goalsin the processtowardsuccess, we1. Increase Sales with acceptable Return Increase with acceptableneed to defineReturnSpend (Profitability) on Ad on Ad Spend (Profitability)p ( y)the goals. 2. Scale successes in a controlled manner (scalability) 3. 3 Use as few internal resources as possible (efficiency) 4. Maintain control of the CSE marketing process ( (control) t l) 9. Topic ImportanceTwo of the three key ways to effect Profitability 8 Scalability 0 profitability within this scenario are: Efficiency0 1. Adjust h t 1 Adj t what content is provided f t tiid d for Control 0each product to each CSE(content optimization) 2. Adjust which products aremarketed through each CSE(product optimization) 10. FOCUS: Content Optimization Topic Importance Content Optimization:Profitability 8 Provide the best possible content for each product andScalability 0each marketing effort.gEfficiency0Control 0 Send as many product attributes as youhave and the CSE will acceptTake the time to focus on your prod ct Take foc s o r productname, descriptions, keywords and other feedfield content. 11. FOCUS: Content Optimization Topic Importance Content Optimization:Profitability 8 Send as many attributes as you have and the CSE willScalability 0 accept.Efficiency0 We will use Shopzilla as an example: ColumnnameControl 01 Category* Required 2 Mfr NotRequired 3 Title*Required Few data fields 4 Description NotRequired are required by 5 URL*Required most CSEs.6 ImageURL NotRequired 7 SKU*Required Providing non-o d g o8 Stock NotRequired required fields 9 Condition NotRequired will aid in your 10 ShipWeight NotRequired11 ShipCost NotRequired click to purchase12 Bid NotRequired Not Required ratios and Return13 PromoTextNotRequired on Ad Spend. 14 UPC NotRequired15 Price*Required 12. FOCUS: Content OptimizationTopic ImportanceContent Optimization: Profitability 8 Focus on the content of your data Scalability 0 Columnname Suggestions Enter the name of the category where this product appears in your online store. If you do not use a Efficiency0 CSE provided category, they cannot guarantee that your product will appear in the preferred Category* category on their site Control 0 TheManufacturerfieldshouldcontainthemanufacturername,brandnameorpublisheroftheproduct. MfrConsumersoftensearchbyBrandorManufacturer,soincludethiswheneveravailable. Title*IncludeadditionalinformationalongwithproductnameforbestresultsAdding dditiAddi additionall Description NotrequiredButifyouincludecorrectdatawillbehelpful ImageURL NotrequiredButifyouincludecorrectdatawillbehelpfulinformation in key Use UPC for Music & Movies and ISBN for books. Use Mfg Part Number or Model Number forfields can beSKU*Computer Hardware & Software or electronics Stock designates the quantity of products currently on-hand or if the product is in-stock. Use ahelpful.helpfulStocknumerical value to represent quantity in-stock; alternate designations include: In-Stock, Backin stock;Order, Pre-Order, Out of Stock, Limited Quantity, Special Order, See Site In Stock, Back- Condition IncludeforbetterDataProcessing ShipWeight NotrequiredButifyouincludecorrectdatawillbehelpful ShipCost NotrequiredButifyouincludecorrectdatawillbehelpful Promo Text PromoTextNot required ut if you include correct data will be helpful NotrequiredButifyouincludecorrectdatawillbehelpful UPC NotrequiredButifyouincludecorrectdatawillbehelpful 13. FOCUS: Product Optimization Topic Importance Product Optimization:p Market the highest performing products and remove products creating a significant negative impact while maintaining a constant marketing budget. Profitability 8 Scalability 0 To help illustrate this point, and to create a starting point, lets make a Efficiency0 few assumptions as a faux case study: ftif t d Control 0Product Optimization15,000 total SKUs (all being marketed to thisDo remove high costchannel)per click items with lowor no sales $5,000 monthly budget to this CSEDo NOT remove itemsAverage price point of $60/product Averagewith low or no cost perclick regardless of Average Cost Per Click of $0.33sales performance Starting Click to Purchase Rate of 1%Starting Monthly Revenue of $9 000/month$9,000/monthfrom this channel 14. FOCUS: Product Optimization Topic Importance Product Optimization:Profitability 8 Market the highest performing products and removeScalability 0 products creating a significant negative impact whileEfficiency0 maintaining a constant marketing b d i i ik i budget.Control 0Balance SKU count tB lt toLets View a Demonstration Applet Nowachieve the desiredgross revenues andClick to Purchase ratios, SKU Count SKUs Marketed CTPR Avg Price Point Click Count Monthly Budget Avg CPCRevenues15000 15000 1% $ 60 00 60.0015,00015 000 $5 000 005,000.000.330 33 $9 000 009,000.00or R t Return on Ad SSpend. dSKU Count SKUs Marketed CTPR Avg Price Point Click Count Monthly Budget Avg CPCRevenues15000 10500 6% $ 60.0015,000 $5,000.000.33 $ 54,000.00SKU Count SKUs Marketed CTPR Avg Price Point Click Count Monthly Budget Avg CPCRevenues150007500 8% $ 60.0015,000 $5,000.000.33 $ 72,000.00 15. FOCUS: Product Optimization Topic Importance Product Optimization:Profitability 8 Market the highest performing products and removeScalability 0 products creating a significant negative impact whileEfficiency0 maintaining a constant marketing b d i i ik i budget.Control 0Balance SKU count tB lt toachieve the desiredgross revenues andClick to Purchase ratios,or R t Return on Ad SSpend. d 16. Topic Importance 1. 1 Adjust what content is provided for Profitability 8each product to each CSE Scalability 0 Efficiency0(content optimization) Control 0 2. Adjust which products aremarketed through each CSEThird key step in(product optimization)successful CSEmarketing >> 3. Assess and evaluate your efforts,y ,and adjust accordingly. 17. FOCUS: Assess and Adjust Topic Importance Process Assessment:A merchant MUST have a feedback or reporting mechanismProfitability 8 which should include clicks AND purchases.Scalability 0 For best results, prioritize your analysis as follows:Efficiency01. High Click Cost on products, categories or brands withControl 0 low sales performance within a channel1.What ISNT working2. Any ca