DMA2014: E-commerce Is Moving Faster Than You Are – Catch Up!
It may have been too much for direct marketers to ingest at once—more of an entire pizza, instead of just a slice. At Slide 26 of 56, out came the graphs and charts during "E-commerce: The Crucible of Customer Engagement." The third speaker, Ryan M. Craver—the SVP of strategy at Hudson's Bay Company | Lord & Taylor—was speaking to direct marketers on Oct. 28 at DMA2014 in San Diego.
Craver joked during the keynote that he'd promised to continue to keep attendees crying after they'd watched a tearjerker of a campaign from British Airways' John McDonald.
Craver told them about how foot traffic is way down at retail locations. E-commerce is way up. Marketers not only have to pay attention to e-commerce as a profit center, they have to rethink e-commerce.
The best way to think of e-commerce customers now is to call them "click" customers, Craver says.
"E-commerce is expected to grow 87 percent from 2013 to 2018, whilst mCommerce is expected to grow 157 percent," reads Craver's Slide 29, paraphrasing eMarketer. "By 2018, mCommerce will account for 27 percent of overall U.S. e-commerce sales."
Just because one channel is up, though, don't start disregarding the others, he cautions. That meant so much to attendee @LaurentLingelse, he tweeted a picture of the "No Customer Is Binary" slide. There, Craver breaks down the profiles of "Leisure," "Researched," "Webroomer" and "Showroomer" personas. And even that doesn't tell the whole tale.
Across those personas, there are cross-device users. Consumers use mobile devices in stores. Craver points out that in one pilot, beacons "drove two- to three-times open and conversion rates of typical banner campaigns" in his company's 10 test-site stores.
"We started with five Lord & Taylor and five Hudson's Bay [stores] in Canada," Craver tells Target Marketing regarding deploying with five beacon apps for the pilot. "And now [we] are rolling [it] out to all stores by end of [the] month."
Craver believes eventually, all platforms will monetize through commerce. Also, he says location-based marketing can bridge offline and online retail, as recorded by Mark Donatelli, global head of data strategy and planning at Ogilvy & Mather Worldwide.
Then there are the "instant gratification marketplaces." Once, Craver recalls, people used to walk around flea markets. Now they visit Etsy. Add more examples to the list with Uber, Airbnb and OpenTable.
Brian Fetherstonhaugh, OgilvyOne chairman and CEO, provides presentation's key takeaways about e-commerce—which @jennebarbour tweets him calling "the only positive driver of positive same-store sales growth":
- It is an unstoppable global force
- Put it at the center, not on the side of marketing
- Think "continuous commerce," not just the transaction
- Mobile shows the way
- Bet at least one chapter of your career on e-commerce
What else is new for e-commerce marketers?
Please respond in the comments section below.