Following on from ensuring your marketing messages are Accessible where people are looking, as addressed in the previous accessible marketing article; these messages must also be Available at the time people are looking.

In the traditional offline retail store, people are looking during your opening hours and therefore you are “available”. However online researchers and shoppers do not restrict their research behaviour to store hours, instead they are looking 24 hours a day, 365 days a year. So, unless your marketing messages are accessible at a product level (remembering that this is predominantly how people research) and can be discovered every minute of every day, you are missing out on prospective customers.

With traditional stores, there was no availability conundrum. Stores were 100% available (open) during the time people would look in the store (shopping hours). However, it is impossible to get the same 100% availability through traditional media; due to logistics, cost and the nature of offline media.

So the paradigm of ‘Availability’ under traditional media and with traditional channels, was based around two key instruments

- opening hours; and

- promotional campaigns.

Opening Hours – online must be always open

The online behaviour of prospective customers changes this paradigm. Opening hours for a retailer online (whether a customer is buying or just researching) should be 24/7. This 100% availability is a significant change from the 33% availability (9-5, 7 days a week) current stores have. Fortunately, this is relatively easy to achieve online.

Promotional campaigns – re-think your marketing messages for online

The difficult thing for retailers to achieve is producing the information the consumer is seeking in order to make a decision and making it available 24/7. This is where the traditional marketing behaviour of promotional campaigns, with defined start and stop dates, must be modified or supplemented to be successful online.

What happens to the millions of searches that occur when you don’t have a catalogue campaign or a sale event on? Are you closed? Do you not sell products during these “down” times? Of course the answer is you do sell and you do want people to find you. So you must have content, applicable to helping people decide to buy from you, available at all times. In sales times and in non-sales times, every day of the year.

This content doesn’t have to be discount- or event-driven. It could be your key inventory lines with images and product information and your every day pricing. But it must all be easily accessible on your site and through other channels and be available whenever and wherever somebody chooses to look for it.

Filling the gaps between marketing campaign pushes with consistent information to cater for the person seeking for “thongs” in June and “woolly jumpers” in December is crucial to optimising the online experience. There might not be many of these searchers, but they exist in numbers greater than you expect; so you might as well be prepared for that opportunity.

The beauty of the online channel is that for the first time you can reach all the people searching for the products you sell at the time they are searching, something no other media can do. This could be late at night, or at work during the lunch hour, or in the car via the mobile phone. If you have nothing available for people to find you are putting up a “closed” sign – when in reality, for most products retailers are open for business.

Having covered marketing that must be accessible and available; next week we shall look at the final “A” – Applicable marketing. Until then, happy selling.

Paul Marshall

Executive Director

Salmat Digital

www.lasoo.com.au

I believe there are three ‘A’s of digital retail marketing; Accessibility, Availability, and Applicability. These key principles are a prescription to follow for success at using digital media to reach and influence your customers.

This entry starts with Accessibility. This refers to the ease with which consumers can discover, access and interact with your brand, your consumer information, your product offers and your marketing messages. It may seem self evident, but your information needs to appear in the locations where the customer attention is.

The challenge with digital media is that the definition of ‘place’ is now vast. Traditional media is still limited in its number of ‘places’ to put your messages; be that TV stations, radio stations, magazines, or newspapers. That scarcity means high prices –despite the fact that consumer attention is shifting, and much more fragmented. The letterbox still maintains a good amount of attention, even among ‘netizens’ who still check their mail, and continues to be a powerful and effective place for retailers to put their marketing messages; hence it continues to be a dominant marketing channel for retailers.

In all of the traditional channels above, accessing the information is straight forward, ubiquitous and easy. Passive consumption tends to have that advantage.

Digital media on the other hand is different, and comes with its own challenges and complexities. People could be in one of any number of ‘places’ when they are making purchasing decisions, and be somewhere else seconds later. Quickly jumping from place to place is the underlying heart of the Internet. Adapting to active consumption, and acknowledging the power shift to the consumer, is paramount if you are to succeed online. How do you catch the attention of the freedom loving information junkie? The challenge becomes more complex when we look at the many different devices now used to access digital media.

Accessible marketing therefore refers to your marketing messages being:

1. Where the consumer is

2. Able to be ‘consumed’ through multiple devices and media types

3. Able to be to be shared, forwarded, printed, saved etc

1. Be where the consumer is.

Fundamentally this means you must be in more places than your own web site. Regardless of the strength your brand and marketing, only a minority of people who are making buying decisions on the products you sell, will come straight to your website. These people are already loyal to your brand. You need to have a strategy to reach new people, either through some sort of paid online marketing, or as a vector of those people already at your website.

So where are they? They are of course in many places. Search engines are the first place to start – as the majority of Australians start their research journey here. Then there are vertical search engines (such as Lasoo.com.au), comparison sites, shopping sites, blogs, social media, industry portals etc. All of which form a very important part of accessible marketing.

To be across the spectrum there is a balance of paid and unpaid media. For example search engines can give you consumers through advertising (paid search marketing) and through being found naturally or organically in the search results. Appearing organically remains a big challenge for Australian retailers, a topic to be covered in  a future blog.

Being in many of the other places requires you to advertise, targeting your marketing messages selectively based on performance. Again this is also a challenge for many retailers who do not have their marketing messages in a suitable digital format for online distribution. Finding the right format is more than the end result that ends up on a consumers screen far away, it is tightly baked into the process of how that information gets to its destination.

2. Be accessible through different devices/media

In addition to your marketing messages being available to you as defined data, suitable for distribution; your distribution vehicles should be optimised for the various browsers, device types and applications which people will choose to access your information through.

Starting with the basics, web sites need to be optimised for a range of browsers now and not just IE. Mobile devices, particularly smartphones are increasingly being used to access the internet via WAP, web-browsers or purpose built applications which optimise the experience. People will also want to access what you have to tell them through other means such as RSS readers, desktop applications or widgets, and applications in their favourite online social networks. It is important to plan campaigns to be truly multichannel and be able to be found through all of the above, and to be prepared for what is coming around the corner.

3. Be easily shared and talked about

You need different web pages (or landing pages) for each of your marketing messages, each product offer, every product you sell. Why? Because this is what people link to, what Google indexes, what people share, print, email onto a friend etc. If you take out paid search advertising you need relevant pages to land people on. Behind this is the need to have structured or defined data. For it is only with defined data that you have the flexibility to build pages for multiple devices and can be effectively, shared, printed etc.

For example, a common mistake retailers make with their catalogues, is not having landing pages for each of the products they are advertising. This means there is of very little benefit to the retailer in attracting new customers to their site. It reduces “shareability”, “discoverability”, and “mashability”.

Making your marketing accessible is clearly important, and your own web site is the essential starting point. The next step is making that website, its content and pages, easily and well indexed by search engines, and easily shared and consumed by customers. Finally, comes pushing out your information to the many sites, tools, applications and devices that people are interrogating to find out what to buy and from where. Surely you would rather be in the search results when the alternative is to be invisible?

Stay tuned for part two, when I explore the second “A” of digital retail marketing, Availability.

Paul Marshall

CEO, Salmat DigitalForce

There are three important digital marketing principles, which will become more important over time. They are Marketing Accessibility, Availability and Applicability. In my regular piece in Inside Retailing, I will be exploring each in some detail over the coming month. However, briefly, they are as follows.

Accessibility. This refers to having your product and marketing information easily available; at the place (and time, which falls into Availability) where someone is looking. Accessibility well beyond your own website’s search and navigation. More important is the need to be discovered and available where people are looking, including search engines, industry portals, social sites, RSS readers, desktop tools, mobile phones etc.

Availability. People are not making buying decisions only when you have your marketing campaign running or your stores open. Digital media changes the paradigm of retail marking in that people are now seeking information and purchasing from anywhere in the world, at any time of the day or night. How do you respond to that? How can you ensure the availability of your information when people are looking for it?

Applicability. Digital media is by its very nature interactive, selective and user-controlled. It is a media-optimised and individual experience and therefore difficult to use as a marketer. Replicating mass media marketing (untargeted display advertising) does not work. Relevance is the key to marketing in the digital media; ensuring your brand and your messages are applicable to each recipient is essential for both the health of your brand and the success of your campaigns. Applicability all starts with understanding each customer. If your advertising is relevant, it is indistinguishable from information.

Each of these will be explored in further detail in Inside Retailing and also in this blog over April/May.

In 2009, eCommerce in Australia is expected to generate around $18 billion in sales. That’s a lot! But it’s still only a fraction of what is sold in more traditional channels such as retail stores. Still, I know what you’re thinking…it would be good to get a bit of that action, yes? The decision whether to sell online, and to what scale, is a difficult one. While many elements and variables in the decision are unique to each retailer, there are a number of common factors in the decision. I have explored five of the compelling ones below.

1. Your shopper has, for all time, changed
Just like those in many similar countries, the Australian shopper has evolved quickly in three fundamental areas that every retail marketer should be aware of.

Firstly, the nature of the media they consume and style in which they consume it has changed dramatically. Online has quickly moved up to challenge TV as the most-consumed media in the Australian household. A report released by Nielsen earlier this month claims that online has already taken over TV, with an average of 13.7 hours a spent week online compared to 13.4 hours watching TV. While there is some question over the methodology, covered briefly here, the can be no denying the trend: all major media is down, except online. This rise in online amidst the decline and fragmentation of the major media means a more challenging landscape for marketers, and one that must include online media.

Secondly, online has quickly become the key media to influence what people buy and from where. The Australian Centre for Retail Studies and Google combined to research Australian shoppers in early 2008. The results showed that half of Australian consumers use online to research what to buy and from where, in other words to pre-shop, prior to going into store to buy. Covering consumer electronics, entertainment and computers, a quarter of the shoppers nominated online as their most crucial research tool, well ahead of other media.

Finally, there are many shoppers (and many more coming) who want to buy online. Why? The key reasons, according to Forrester Research, are firstly convenience, then selection and then price. I remember my very first marketing lecture in 1986 (yes, it was called Marketing 101) where the opening subject was “give the customer what they want”. If they want to buy online; then this is a good argument for you to start selling online. Otherwise…

2. You will lose sales and market share if you don’t sell online
Moving online opens you up to an entirely new set of competitors. Leading retailers like Deals Direct did not exist five years ago and today have more online customers than any of our traditional retail brands. Competition has also come from offshore, something the US eTailers are determined to increase, with 53% (Forsee Research) of them able to deliver to Australia. We know that Amazon is the number one online bookseller in Australia and Apple is the dominant music retailer. However there are also large players in areas such as cosmetics, apparel, jewellery and accessories. There is also a growing move to manufacturers selling direct online.

3. Your customer base will be more loyal if you sell online and will buy more in-store
To turn point two above into a positive, selling online will mean you will increase your sales. Online will reach further than your store can; will appeal to those who want to buy online; and will give you more visibility to those researching online. However, it is important to remember (though this is less understood) that selling through multiple channels will have a positive impact on your customers, their loyalty and their spend. Much of this influence online will have will have a positive effect on your in-store sales as well.

There is a significant amount of real data from research and retailers showing that a customer who interacts with a retailer through multiple channels will buy more frequently and will have a larger basket size. The major impact will be on your store sales. JC Penney published figures on the average spend of its customers, showing store sales to be twice as great for customers using two channels instead of one and up to four times higher for customers who interact across their three main channels (online, in store and catalogue). This is supported by research from Dieringer conducted online, which found that shoppers spend +60% more ($400 vs. $250) and buy two more items (five vs. three) at local stores than they purchased directly online.

4. Online sales is the fastest growing retail channel, and continues to grow in the current climate
According to eMarketer, 49% of Christmas 2008 gift spending among US Internet users occurred online, compared with 44% in stores. This is significant because it is the first time that the web has surpassed the store as the preferred channel for Internet users to purchase holiday gifts. Along the same lines, results from both the US and UK over the recent months show that while online sales are slowing in growth, they are still growing month-by-month. This is in stark contrast with store sales. According to Euromonitor Intl, since 2001 the combined annual growth rate of Internet retailing has outstripped every other retail category by close to three times. The channel is healthy moving forward.

5. The online channel can be more profitable
Because of the nature of selling online, the fixed costs remain relatively stable as revenue grows. What is less understood is the efficiency of marketing and the ability to eliminate any wastage in this area and the impact this can have on increasing your profitability. In a future column I will focus on this topic in some detail, however quite simply the equation is this: if you know your conversion rate (percentage of people who buy), your average basket size and your margin, you can engineer your marketing to achieve a certain return. This allows you to eliminate marketing wastage and retain a strong profit margin on your sales.

So there are some good reasons to sell online. In a future column I will explore some of the potential hurdles of starting e-commerce in Australia, and hope to suggest a few ways to overcome these.

If there is a topic you are interested in me exploring further or have any feedback, please email me.