tag:www.econsultancy.com,2008:/topics/multichannel Latest Multichannel content from Econsultancy 2017-05-25T10:41:00+01:00 tag:www.econsultancy.com,2008:BlogPost/69114 2017-05-25T10:41:00+01:00 2017-05-25T10:41:00+01:00 How Subaru uses a data-driven marketing strategy to target customers Nikki Gilliland <p>Led by Iain Lovatt from BlueVenn, it was all about Subaru’s <a href="https://econsultancy.com/blog/68822-where-is-data-driven-marketing-headed-in-2017/" target="_blank">data-driven marketing</a> strategy. More specifically, how the automotive brand uses data to create an emotive and personalised customer experience. Here are a few key takeaways.</p> <h3>Utilising actionable data </h3> <p>One of the main talking points of the whole conference was the importance of using all types of data. Or rather, not being limited to a certain kind. </p> <p>Hard data, such as gender or age demographic, is obviously helpful for gaining general insight into the consumer. Soft data, meanwhile - things like personal preference or opinion - is equally important for fleshing it out.</p> <p>While this is a good basis, actionable data is what ultimately helps to drive and inform real-time marketing. For Subaru, this type of data might involve how often a consumer is browsing the website or what type of car they’re looking at. </p> <p>By taking all this data into consideration (and from all sources), Subaru can build a <a href="https://econsultancy.com/blog/65425-what-is-the-single-customer-view-and-why-do-you-need-it/" target="_blank">single customer view</a>. This enables the brand to treat all consumers as individuals rather than large segments, meaning they are able to deliver more timely and relevant content based on real-time needs and desires.  </p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Need a car that can go the distance? The average Subaru will clock up 200,000 miles in its lifetime. Find out more: <a href="https://t.co/wcT8TnyyvE">https://t.co/wcT8TnyyvE</a> <a href="https://t.co/9ZM1dW8Ppx">pic.twitter.com/9ZM1dW8Ppx</a></p> — Subaru UK (@subaruuk) <a href="https://twitter.com/subaruuk/status/864579942541131776">May 16, 2017</a> </blockquote> <h3>Creating relevancy</h3> <p>So, how exactly does Subaru deliver this?</p> <p>One thing that has dramatically helped the brand has been its decision to centralise and combine both online and offline marketing data. </p> <p>Let’s take Tomas - an example Subaru customer that might have first been identified via online browsing behaviour. While using this data might help to inform <a href="https://econsultancy.com/blog/69015-three-key-findings-from-the-2017-email-marketing-census/" target="_blank">relevant email targeting</a> – it also means that Tomas would be treated entirely differently if he were to visit an offline dealership. </p> <p>On the other hand, Tomas’s offline persona would not be taken into consideration online either.</p> <p>The solution for Subaru has been to create a unified customer-base that integrates dealership information with online data. This has enabled the company to tailor email newsletters based on exactly where the customer is in their journey, as well as monitor customer behaviour and satisfaction levels.</p> <p>Ultimately, marketing becomes all the more relevant as the customer further engages with the brand – regardless of the channel or how fragmented their path to purchase is.</p> <h3>Turning test drives into sales</h3> <p>Alongside general customer satisfaction, Subaru has seen a marked increase in conversion rates as a result of its multichannel data-driven strategy. The number of enquiries leading to test drives has risen by a factor of 3.2.</p> <p>With the experience of buying a car being highly based on both senses and emotion - involving everything from the sound of the engine to that new car smell – test drives are a hugely important factor.</p> <p>Of course, encouraging test drives is not enough. By using data insight to match consumers with the <em>right</em> car – one that suits their specific lifestyle, budget and needs – Subari has managed to increase the number of test drives leading to sales by a factor of 1.6.</p> <p>This shows that data-driven marketing is not only about attracting and engaging customers in the first place, but using data to deliver a more rounded and emotive experience across the board.</p> <p><img src="https://assets.econsultancy.com/images/0008/6351/Subaru_test_drive.JPG" alt="" width="780" height="346"></p> <h3>What does the future hold for the automotive industry?</h3> <p>Iain finished by asking what the future of the automotive industry might look like. From driverless cars to telematics, there’s no doubt that data will be at its core. </p> <p>Last year, the company partnered with IBM to explore the idea of a data analytics solution involving Subaru’s ‘EyeSight’ driver assistance system – a feature that uses stereo cameras to detect other vehicles and pedestrians. The end result could be the creation of a ‘connected car’ network that shares and communicates data between cars and control centres. </p> <p>Whether or not it actually comes to fruition, Subaru insists that – much like its use of data in marketing – technology will always be built around how it can truly benefit and enhance the customer experience.</p> <p><em>(Ad for the Subaru Impreza with EyeSight)</em></p> <p><iframe src="https://www.youtube.com/embed/pprehPwyCgU?wmode=transparent" width="854" height="480"></iframe></p> <p><strong><em>Related reading:</em></strong></p> <ul> <li><em><a href="https://econsultancy.com/blog/67877-how-automotive-brands-are-blurring-the-lines-between-digital-reality/">How automotive brands are blurring the lines between digital &amp; reality</a></em></li> <li><em><a href="https://econsultancy.com/blog/67700-what-can-automotive-brands-learn-from-the-tesla-website/">What can automotive brands learn from the Tesla website?</a></em></li> <li><em><a href="https://econsultancy.com/blog/69053-how-maserati-uses-influencers-to-drive-its-instagram-strategy/">How Maserati uses influencers to drive its Instagram strategy</a></em></li> </ul> tag:www.econsultancy.com,2008:BlogPost/69095 2017-05-18T14:10:00+01:00 2017-05-18T14:10:00+01:00 How Coca-Cola is using smartphone data to personalise in-store ads Nikki Gilliland <p>It’s not such a far-fetched notion. Recently, Coca-Cola started using Google technologies to target consumers in US grocery stores. So, how does it work exactly? Here’s a bit more on the story.</p> <h3>Ads in grocery aisles</h3> <p><a href="https://econsultancy.com/blog/68051-six-case-studies-that-show-how-digital-out-of-home-advertising-is-changing/" target="_blank">Digital out-of-home advertising</a> typically uses contextual data to display relevant ads, e.g. a Coke billboard that changes depending on the weather. Digital signs (such as those at bus stops or in buildings) also use data in this way.</p> <p>The problem for brands like Coca-Cola, however, is the high cost of these ads, combined with a lack of any real <a href="https://econsultancy.com/blog/67070-why-personalisation-is-the-key-to-gaining-customer-loyalty/" target="_blank">personalisation</a> or targeting to individual consumers. This is where Google-integrated ‘endcaps’ come in – a term used to describe advertisements at the front of grocery store aisles. (Endcaps are fairly common in the US, but less so in the UK.) </p> <p>These endcaps serve ads to passing consumers based on their smartphone data, using a combination of Google’s DoubleClick and location-based technologies.</p> <p><img src="https://assets.econsultancy.com/images/0008/6150/Endcaps.JPG" alt="" width="760" height="439"></p> <p>The data includes anything from your basic gender or age demographic to previous browsing history. So, an ad could change from Coke Zero to Glacéau Smartwater if it recognises a preference for healthier products, for instance.</p> <p>The aim is to connect and engage with consumers to drive sales of the brand in retail stores – however Coca-Cola has also suggested that it benefits other brands and products within the same category (in this case soft drinks). This sounds somewhat improbable, but moving on. </p> <h3>Creepy or enhanced customer experience?</h3> <p>The real question is: Will consumers will be happy to receive super targeted ads, or does this level of personalisation veer into creepy territory? This generally remains one of the biggest issues for marketers, with <a href="http://www.pewinternet.org/2016/01/14/privacy-and-information-sharing/" target="_blank">research from Pew</a> suggesting that consumers do not want to trade privacy for personalisation. </p> <p>It found that people are particularly negative about targeted ads if they are unaware of what is happening or do not provide outright consent. However, the study also found that consumers are more willing to accept data tracking if ads are highly relevant or beneficial, e.g. offering discounts or coupons.</p> <p>Fortunately, Coca-Cola’s endcaps also involve communicating wirelessly with devices to send tailored offers or coupons, also meaning people do not have to log-in or stand still. This could be one benefit, but it is unlikely to satisfy all consumers.</p> <p><img src="https://assets.econsultancy.com/images/0008/6151/Google_tech_Coca_Cola.JPG" alt="" width="760" height="544"></p> <h3>Will it catch on?</h3> <p>While this example from Coke appears to be a first, it’s clear that tracking physical consumers is becoming a pressing concern for the retail industry as a whole. </p> <p>Online retailers can easily hone strategies based on metrics like click-throughs and <a href="https://econsultancy.com/blog/67120-12-ways-to-reduce-basket-abandonment-on-your-ecommerce-site/" target="_blank">basket abandonment rates</a> – so it’s understandable that offline retailers want to build a similar picture of consumer behaviour. </p> <p>Interestingly, a report by <a href="https://dxc.turtl.co/story/55ee93d8bbfd077f2d4e22ee" target="_blank">CSC</a> recently suggested that as many as 30% of retailers are now using facial-recognition technology to track customers in-store. By comparing certain facial characteristics with browsing or buying behaviour, retailers are able to predict intent and deliver relevant ads. Unsurprisingly, CSC also reports that 33% of consumers think the technology is intrusive, while 56% do not even know what it is.</p> <p>Whether consumers are creeped out or keen for this kind of in-store tech – with Coca-Cola set to roll out endcaps to thousands of US stores – we could be seeing much more of it in future.</p> <p><em><strong>Related reading:</strong></em></p> <ul> <li><em><a href="https://econsultancy.com/blog/67705-what-s-now-next-for-digital-technology-in-retail-stores/">What's now &amp; next for digital technology in retail stores?</a></em></li> <li><em><a href="https://econsultancy.com/blog/67418-what-is-location-based-advertising-why-is-it-the-next-big-thing/" target="_blank">What is location-based advertising &amp; why is it the next big thing?</a></em></li> <li><em><a href="https://econsultancy.com/blog/67038-11-ways-to-track-online-to-offline-conversions-and-vice-versa/" target="_blank">11 ways to track online to offline conversions (and vice versa)</a></em></li> </ul> tag:www.econsultancy.com,2008:BlogPost/69091 2017-05-17T14:19:02+01:00 2017-05-17T14:19:02+01:00 How Mr & Mrs Smith differentiates itself from digital competitors Nikki Gilliland <p>I recently heard Tamara Lohan, the CTO and co-founder of Mr &amp; Mrs Smith, speak at Abode Summit on the subject. Here are a few key points from her session.</p> <h3>Carefully curated hotels</h3> <p>Mr &amp; Mrs Smith originally began after a disastrous hotel stay, whereby Tamara and her then-boyfriend (now husband and business partner) were met with a decidedly different experience than the one they’d imagined. </p> <p>Realising that most travel agencies skip over what actually makes a holiday special - i.e. the little but memorable details – they set out to create a company which has the customer’s needs and desires in mind.</p> <p>With the core aim of inspiring people to travel to extraordinary places, it researches the best and most overlooked boutique hotels, which are often unique in terms of design and architecture. The company also values hotels that are environmentally-friendly or dedicated to local issues. Its selection of hotels in the Maldives is a clear example of this. With waste management becoming an increasing issue on the island, Mr &amp; Mrs Smith only chooses eco-friendly and sustainable hotels that aim to counteract the problem. </p> <p>Alongside this, one aspect that also sets Mr &amp; Mrs Smith apart is the fact that its hotels go through a rigorous testing and review process, with employees visiting each one to ensure it delivers a truly memorable experience.</p> <p><img src="https://assets.econsultancy.com/images/0008/6074/MR___MRS_Smith_Insta.JPG" alt="" width="780" height="568"></p> <h3>Creating loyalty</h3> <p>So, while its value proposition is clear, how does Mr &amp; Mrs Smith capture clicks – crucially even before customers turn to search? Instead of serving intent, the brand aims to create it by fostering loyalty.</p> <p>It differentiates itself from competitors like <a href="https://econsultancy.com/blog/68505-a-closer-look-at-booking-com-s-customer-focused-strategy/" target="_blank">Booking.com</a> and On The Beach by being a ‘travel club’ rather than an online booking platform. This idea builds on customer’s long-term interest in travel as well as their desire to forge relationships with like-minded people.</p> <p>While membership to Mr &amp; Mrs Smith only means booking through the website (there is no cost or fee to become a ‘member’), this idea aligns with the brand’s promise of offering something extra special. Booking with the brand means customers can enjoy perks such as being met with champagne on arrival, as well as exclusive offers and experiences throughout the year. </p> <p>Not only does this evoke a sense of exclusivity – making members feel recognised and inspired – but the included benefits mean consumers are much more likely to return again in future.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Bye <a href="https://twitter.com/FoxhillManor">@FoxhillManor</a>, it's been epic! <a href="https://twitter.com/smithhotels">@smithhotels</a> <a href="https://t.co/tp1GTjGuwt">pic.twitter.com/tp1GTjGuwt</a></p> — Olivia von Halle (@OliviavonHalle) <a href="https://twitter.com/OliviavonHalle/status/819945671620968449">January 13, 2017</a> </blockquote> <h3>Delivering unique content</h3> <p>‘Does everything have to be digital?’ was the title of Tamara’s talk. The answer is pretty obvious, of course, with Mr &amp; Mrs Smith typically partaking in both online and offline marketing activity to ensure it reaches customers in multiple ways.</p> <p>But while not everything has to be digital, it <em>does</em> have to be unique – which is a philosophy reflected in branded events like the ‘Smith Boutique Hotel Awards’. </p> <p>The annual awards ceremony honours the best hotels in the industry, with voters being made up of tastemakers, specialists and industry insiders. Unlike typically stuffy or corporate award ceremonies, it is consumer-facing, inviting customers and influencers to also attend. </p> <p>As well as forging one-to-one relationships with consumers, the awards are also a great way to create valuable content. Two weeks before this year's event, the company sent photographer Polly Brown on a whistle-stop tour of the winning hotels, documenting the results on both Instagram and a printed newspaper that was sent to a few select and loyal customers. </p> <p>Just like the travel experiences found in its hotels, it is special and meaningful touches like this that truly sets Mr &amp; Mrs Smith apart. </p> <p><img src="https://assets.econsultancy.com/images/0008/6075/Punch_Room.JPG" alt="" width="780" height="369"></p> <p><em><strong>Recent travel articles:</strong></em></p> <ul> <li><em><a href="https://econsultancy.com/blog/69052-how-visitscotland-is-transforming-the-traditional-tourist-body/" target="_blank">How VisitScotland is transforming the traditional tourist body</a></em></li> <li><em><a href="https://econsultancy.com/blog/69018-how-airline-brands-are-improving-customer-experience-in-flight/" target="_blank">How airline brands are improving customer experience in-flight</a></em></li> <li><em><a href="https://econsultancy.com/blog/68989-three-ways-language-can-affect-conversion-rates-on-travel-sites/" target="_blank">Three ways language can affect conversion rates on travel sites</a></em></li> </ul> tag:www.econsultancy.com,2008:BlogPost/69063 2017-05-05T13:07:06+01:00 2017-05-05T13:07:06+01:00 10 juicy digital marketing stats from this week Nikki Gilliland <h3>Ecommerce decision-makers bank on new tech</h3> <p>A new study from Salmon suggests ecommerce decision-makers are increasingly investing in new technology like IoT and virtual reality.</p> <p>Research found that 61% are currently investing in IoT (Internet of Things) enablement, while 69% plan to invest in robots and 60% in machine learning within the next five years.</p> <p>What’s more, 74% of decision-makers plan to switch ecommerce platforms in the next 12 to 18 months, with 92% of organisations recognising the need to better analyse data to improve the customer experience. </p> <h3>82% of UK consumers are unaware of the filter bubble</h3> <p>Research from the7stars has found that most consumers are unaware that their online experience is limited by social media and search preference algorithms. In fact, 82% have never heard of the term ‘filter bubble’. The study also found that consumers want more serendipitous content online from brands, with many stating positive emotions when asked how relevant but unexpected ads make them feel.</p> <p>In contrast, when asked what they associate with expected advertising based on recent searches or expressed interests, the majority of consumers chose negative words such as ‘targeted’, ‘intrusive’ and ‘annoying’.</p> <p><img src="https://assets.econsultancy.com/images/0008/5904/the7stars.jpg" alt="" width="780" height="463"></p> <h3>75% of consumers say Amazon would be their go-to physical store</h3> <p>According to new research from <a href="http://www.fujitsu.com/uk/solutions/industry/retail/forgotten-shop-floor/">Fujitsu</a>, four out of 10 consumers in the UK are disappointed by the state of in-store technology. 75% say they would choose Amazon or eBay over traditional names if these retailers had a physical presence on the high street. </p> <p>When it comes to the reasons for this disillusionment, 42% say it is because the technology is slow, while 37% say it is unreliable. Three quarters of consumers say they can access more information than retail employees as a result, with 73% saying they can get it quicker. This means that around 65% of employees are even using their own devices to try to bridge the gap.</p> <p><img src="https://assets.econsultancy.com/images/0008/5900/Fujitsu.jpg" alt="" width="464" height="336"></p> <h3>360-degree technology is fuelling investment in digital video </h3> <p>A new study by AOL suggests that new advances in technology are contributing to the rise of digital video. Research shows 55% of buyers and sellers in the UK believe immersive formats such as 360-video will provide one of the best revenue streams over the next 12 months. </p> <p>That being said, these formats are still in the early days of adoption. According to the study, 20% of consumers in the UK watch virtual reality video once a week or more, and 68% of Brits say they never watch VR at all.</p> <p>While immersive formats have yet to truly take off, live formats are becoming mainstream – 42% of consumers in the UK now watch live content once or more than once a week versus 55% globally. In truth even these numbers seem quite high.</p> <h3>Eight in 10 shoppers think music makes in-store shopping more enjoyable</h3> <p>A report by <a href="http://moodmedia.co.uk/shopping-with-emotion/">Mood Media</a> has highlighted the importance of improved customer experience in-store. In a survey of 2,000 consumers, 89% said they are likely to revisit a store if it has an enjoyable atmosphere. Eight in ten like background music while they shop in-store, with 75% saying waiting times are less dull if it is playing. </p> <p>When in a shop with enjoyable elements like music, visuals, or scent, the study also suggests that shoppers are more likely to stay longer, revisit, and recommend it to others – as well as choose the store over buying online.</p> <p><img src="https://assets.econsultancy.com/images/0008/5901/Music.jpg" alt="" width="750" height="365"></p> <h3>Ad campaigns using audience IDs predicted to triple by 2020</h3> <p>Audience IDs – which are the online identity profiles used to recognise and match users across different devices and channels – will be used in 58% of total UK online ad spend by 2020.</p> <p>This comes from a new report by Yahoo and Enders Analysis, which also suggests that audience ID ad spend will triple to €7.9bn by 2020, compared with €2.7bn in 2016.</p> <p>Predictions also suggest that growth in the volume of ad spend which uses audience IDs will slow when GDPR comes into effect in 2018. However, it will continue to grow as the industry responds and adapts to the new regulatory requirements.</p> <h3>UK grocery sector grows 3.7%</h3> <p>The <a href="https://www.kantarworldpanel.com/global/News/Britains-sweet-tooth-helps-grocery-sales-rise">latest figures</a> from Kantar Worldwide show that all 10 major UK retailers saw growth in the 12 weeks ending 23 April 2017, with the sector growing 3.7% as a whole. Britons spent an extra £1bn this year compared to last, with both Easter and inflation contributing to increased spend. A preference for premium confectionary lines was also a factor, with the average price paid for an Easter egg rising by 8.6% to £1.65.</p> <p>In terms of the big supermarkets, Sainsbury’s sales rose 1.7%, while Tesco's were up 1.9%. Meanwhile, Iceland, Aldi and Lidl saw greater success, with sales rising by 9.3%, 18.3% and 17.8% respectively.</p> <h3>Data privacy of retail apps is still a big concern for consumers </h3> <p>According to Apadmi’s latest <a href="https://www.apadmi.com/pdfs/retail-app-report-2017.pdf">retail report</a>, concerns over data privacy and security are still preventing consumers from downloading retail apps. </p> <p>In a survey of UK 2,000 shoppers, 74% said they were most concerned about the security of their information, while 34% said they don’t like the idea of retailers storing their information and not knowing what it would be used for. </p> <p>It’s not solely a generational worry, either. The report states that 36% of 45-54 year olds, 41% of 55-64 year olds and 44% of over 65s share the same concern.</p> <p><img src="https://assets.econsultancy.com/images/0008/5903/Apadmi.jpg" alt="" width="318" height="423"></p> <h3>89% of UK retailers have seen a drop in foot traffic over the last five years</h3> <p>Research by <a href="http://unbouncepages.com/retail-research-517/">LoopMe</a> suggests that the shift to online shopping has resulted in a loss of revenue for high street stores, with 93% of UK retailers agreeing this has been the case. </p> <p>In a survey of over 250 decision-makers within retail, 89% said they have seen a drop in foot traffic over the last five years, and 17% state they have lost between 31% and 50% of income from physical outlets.</p> <p>As a result, AI-powered campaigns could help to bring back footfall, with 74.5% of retailers suggesting the in-store experience is an ‘extremely important’ part of the purchase journey.</p> <h3>Young agency execs place less value on viewability metrics</h3> <p>New research from <a href="http://www.turn.com/resources/2017-agency-report-split-opinions-could-impact-videos-evolution">Turn</a> has highlighted how agency executives under 30 are turning their back on current viewability standards, with only 28% viewing it as a key requirement in ad buying.</p> <p>Younger execs are also less likely to see fraud as a major concern, as only a quarter of survey respondents aged under 30 believe fraud-free guarantees will drive future video spend. Meanwhile, almost 40% of brands still consider online conversions and clickthroughs to be the chief measures of video success. </p> <p><img src="https://assets.econsultancy.com/images/0008/5902/Viewability.jpg" alt="" width="659" height="412"></p> tag:www.econsultancy.com,2008:BlogPost/69037 2017-05-02T14:22:35+01:00 2017-05-02T14:22:35+01:00 Four digital commerce lessons from fashion retailer Bonobos Bart Mroz <p dir="ltr">Many upstart ecommerce brands have great products and great ideas. But winning market share is no walk in the park. To win in the world of ecommerce, digital execution has to be flawless, and there has to be something distinctive that keeps customers coming back to buy.</p> <p dir="ltr">The site’s user interface is probably the top make-or-break factor, but there are other keys to success as well. </p> <p dir="ltr">One young brand that has impressed me since its debut a few years ago is Bonobos, a men’s apparel brand that has grown from zero to $100m of revenue in just one decade. Since it started back in 2007, Bonobos has been doing a lot of things right and pioneering strategies that have proven to be effective.</p> <h3 dir="ltr">1. Design product pages strategically</h3> <p dir="ltr">Each product page on Bonobos' website has a clean, elegant design – on both desktop and mobile versions. With <a href="https://www.bloomberg.com/news/articles/2016-07-25/smartphones-overtake-computers-as-top-e-commerce-traffic-source">45%</a> of ecommerce traffic now taking place through mobile, it’s non-negotiable to design product pages to be mobile-friendly.</p> <p dir="ltr">Each pair of pants is professionally photographed, and, even on a small screen, Bonobos has made it easy to navigate and toggle between different colors. The product info is prominently displayed, with links to a fit guide and FAQs nearby.</p> <p dir="ltr"><img src="https://assets.econsultancy.com/images/0008/5805/bonobos_homepage.png" alt="" width="700" height="414"></p> <p dir="ltr">When the customer is ready to buy, the website allows the customer to enter shipping and billing information all on the same page, meaning they can complete a purchase in just a couple clicks. </p> <p dir="ltr"><img src="https://assets.econsultancy.com/images/0008/5806/bonobos_mobile_site.jpg" alt="" width="200">  <img src="https://assets.econsultancy.com/images/0008/5807/bonobos_mobile_site_2.jpg" alt="" width="200"></p> <p dir="ltr">This is important, because many ecommerce websites require that same information to be entered over the course of multiple different page loads, making it more likely that the customer will abandon the cart and the company will lose the sale.</p> <h3 dir="ltr">2. Play to your strengths and do one thing really well</h3> <p dir="ltr">Bonobos got its start because one of the founders, Brian Spaley, had a knack for tailoring men’s pants and creating a comfortable waistline. The concept was unique, and it ended up being the company’s main value proposition.</p> <p dir="ltr">The takeaway for aspiring ecommerce brands is that it pays to start by doing one thing really well.</p> <p dir="ltr">Today, Bonobos sells all sorts of men’s apparel, including shirts, shoes, ties, jackets, and more. But if it had started producing all of that back in 2007, the company might never have taken off like it did. Bonobos did one thing really well and built a brand around it. That simplicity informs the whole brand, and it even helps simplify customer service too.</p> <p dir="ltr">Besides, whenever you are ready to scale your product offering, it’s a lot easier to convince people to buy your shirt when they’re already loyal customers of your pants. Invest early in creating a handful of flagship products that will attract and retain a cult-like following. You can always build out from there.</p> <h3 dir="ltr">3. Leverage customer service as an opportunity for customer experience </h3> <p dir="ltr">Bonobos has also excelled in the area of customer experience, specifically customer service. It’s rooted in an entirely different philosophy about what customer service can achieve for the company.</p> <p dir="ltr">Whenever a customer has an issue with a Bonobos order, there’s no 1-800 number that sends customer calls to a contracted offshore call center where agents might not even be familiar with the product.</p> <p dir="ltr">Rather, customers interact through phone, email, or even chat with highly knowledgeable in-country staff — Bonobos calls them “Ninjas” — who expertly and meticulously handle each customer. The idea is that customer service isn’t an operational expense, but rather a business investment.</p> <p dir="ltr">So instead of being a nuisance, customer service issues are a second opportunity to engage customers in a highly positive experience with the the brand. </p> <p dir="ltr"><img src="https://assets.econsultancy.com/images/0008/5808/bonobos_customer_service.png" alt="" width="200"></p> <h3 dir="ltr">4. Use stores as touchpoints for product discovery and customer experience</h3> <p dir="ltr">Unlike traditional companies, whose business model focused on attracting as many customers as possible into a physical store and later shifted to include online buying options, Bonobos and other upstart brands are native to the online environment.</p> <p dir="ltr">But Bonobos recognized early on that the convenience of online shopping wasn’t enough to win business. Many customers still want to feel, see, and try on products as well as receive individualized attention from a Bonobos staff member.</p> <p dir="ltr">So in 2012, Bonobos opened the first Guideshop, where customers can experience products in-person instead of just through a screen. The Guideshops function as an uncrowded service hub where customers make appointments, return any past purchases, try on new items, and complete purchases, which then get shipped directly to their homes.</p> <p dir="ltr">In the ecommerce era, we can expect to see more brands take this “reversed” approach, which mitigates a lot of fixed costs (particularly the cost of renting and maintaining a storefront) early on, when companies are more focused on hiring staff, developing initial supply chains and operations management, and overseeing product manufacturers.</p> <p dir="ltr"><img src="https://assets.econsultancy.com/images/0008/5809/bonobos_shop.png" alt="" width="650" height="418"></p> <h3 dir="ltr">A retailer for the new age of retail</h3> <p dir="ltr">In the world of retail, few things have had as democratizing an effect as ecommerce. The old status quo has been turned on its head, and a new age of discovering and buying new products is finally upon us.</p> <p dir="ltr">For aspiring ecommerce entrepreneurs, building a company is a long, hard journey, but now is still a good time to get into the space. Look to companies like Bonobos that are pioneering new business strategies and making waves by designing environments — both digital and physical — that make shopping a delight.</p> <p dir="ltr"><strong><em>For more on this topic, see:</em></strong></p> <ul> <li><a href="https://econsultancy.com/blog/68893-four-digital-priorities-for-retailers-in-2017/"><em>Four digital priorities for retailers in 2017</em></a></li> <li><a href="https://econsultancy.com/blog/68216-six-iconic-retailers-and-their-digital-transformation-journeys/"><em>Six iconic retailers and their digital transformation journeys</em></a></li> </ul> tag:www.econsultancy.com,2008:BlogPost/69041 2017-04-27T15:16:00+01:00 2017-04-27T15:16:00+01:00 Social commerce: Why basic bots and buy buttons are not enough Nikki Gilliland <p>It seems that despite mobile commerce rising in popularity – and with one in four users trying to purchase a product on social last year – many brands have struggled to find the right balance between social media and ecommerce. </p> <p>In fact, a recent survey suggests that <a href="http://uk.businessinsider.com/buy-buttons-fail-to-show-return-on-investment-2016-12?r=US&amp;IR=T" target="_blank">45% of adults have no current interest</a> in clicking on a 'buy now' button, while a further quarter don’t even know the technology exists. Meanwhile, many brands are scaling back on chatbots after Facebook reported a <a href="https://econsultancy.com/blog/68868-facebook-scales-back-on-chatbots-what-does-it-mean-for-brands/" target="_blank">failure rate</a> of 70%.</p> <p>So, how can brands make social commerce appealing to users, as well as ensure the process is seamless across channels? </p> <p>This was a question asked at a recent event held by We Are Social, where a number of brands spoke about their previous experience and what they think will be the key to success. Here are a few takeaways.</p> <h3>Most buy buttons do not mirror the user mind-set</h3> <p>While it’s true that users are increasingly turning to social media for shopping inspiration, many brands are failing to realise how big the leap to buying on social actually is. Currently, the reality of social commerce is often very different to the user’s expectations. </p> <p>Caroline Lucas-Garner, strategy director at We Are Social, explained how most experiences involve clicking on a link in a social bio. This then means being taken from the cosy bubble of Instagram to an interim landing page, before finally onto the main ecommerce site itself.</p> <p>That’s a lot of disruption when you think about it, which could naturally lead to users abandoning the journey, or worse – being put off the brand as a result. </p> <p>Similarly, Caroline suggested that buy buttons on other platforms can be akin to a pushy sales assistant, which when you’re simply having a leisurely browse (or scroll), can feel frustratingly intrusive.</p> <h3>Brands in your Messenger inbox feel unnatural </h3> <p>Chatbots are of course another big part of social commerce – we’ve seen many examples of branded bots created for customer service or to drive conversions.</p> <p>But do users really feel that comfortable allowing them into this space? It's an odd notion to see a message from a brand alongside your nearest and dearest.</p> <p>Dominos is one brand that has tried to get around this by creating a character specifically to front its chatbot. <a href="https://econsultancy.com/blog/68184-domino-s-introduces-dom-the-pizza-bot-for-facebook-messenger/" target="_blank">Dom the Pizza Bot</a> has his own unique set of characteristics, designed to urge people to speak to it like they would a friend. </p> <p><img src="https://assets.econsultancy.com/images/0008/5752/Dom_the_pizza_bot.JPG" alt="" width="658" height="309"></p> <p>Another way to make users feel more comfortable interacting with brands in this context is to establish boundaries early on – even making it clear that a bot has limitations. </p> <p>Sam Poullain, senior growth marketing manager at Skyscanner, explained how his team made the decision to include a ‘talk to a human’ option in its chatbot to point users towards an alternative or next step. This way, it was able to prevent people from abandoning their journey, giving users an option to talk to a real employee instead.</p> <p><img src="https://assets.econsultancy.com/images/0008/5753/Skyscanner.JPG" alt="" width="740" height="323"></p> <p>For more on this topic, read:</p> <ul> <li><a href="https://econsultancy.com/blog/67894-what-are-chatbots-and-why-should-marketers-care/">What are chatbots and why should marketers care?</a></li> <li><a href="https://econsultancy.com/blog/68932-how-we-built-our-facebook-chatbot-what-does-it-do-and-what-s-the-point/">How we built our Facebook chatbot: What does it do, and what's the point?</a></li> </ul> <h3>Brand messaging <em>can</em> drive conversion</h3> <p>For ASOS, a brand that has seen growth of 84% on mobile orders year-on-year – social commerce feels like a natural evolution. It is clear that its target customer is highly engaged on social, with those aged 16-14 particularly overlooking search engines for discovery platforms like Instagram and Facebook.  </p> <p>Morgan Fitzsimons, ASOS’s acting head of content and broadcast, explained how the brand is now taking a three-tiered approach to targeting these kinds of customers – choosing to focus on the top of the funnel to ensure the bottom doesn’t have to work so hard. In other words, this means focusing on the brand messaging – not just the buy button.</p> <p>Its recent campaign for jeans is a prime example of this, using a combination of organic and paid promotion as well as dynamic product ads. An initial video tells the story of the brand but doesn’t include any further links. It instead introduces hints of the shopping experience in retargeted ads, before delivering blatant buying options in the final push. </p> <p><iframe src="https://www.facebook.com/plugins/video.php?href=https%3A%2F%2Fwww.facebook.com%2Fasos.us%2Fvideos%2F1540714015970588%2F&amp;show_text=0&amp;width=560" width="560" height="315"></iframe></p> <p>Morgan also admitted that it’s taken a while for ASOS to get to this stage, with previous campaigns on Snapchat failing to follow up with those who first engaged.  </p> <p>Ultimately, she reiterated that success in social commerce lies in continually testing. Only then will brands understand how customers will best respond in this new and unique context. </p> <p><em><strong>Relating reading:</strong></em></p> <ul> <li><em><a href="https://econsultancy.com/blog/67778-made-com-on-the-value-of-social-commerce/" target="_blank">MADE.COM on the value of social commerce</a></em></li> <li><em><a href="https://econsultancy.com/blog/67306-is-pinterest-or-instagram-better-for-driving-ecommerce/" target="_blank">Is Pinterest or Instagram better for driving ecommerce?</a></em></li> </ul> tag:www.econsultancy.com,2008:BlogPost/69000 2017-04-24T11:00:00+01:00 2017-04-24T11:00:00+01:00 What Farfetch's 'Store of the Future' tech says about the state of luxury retail Nikki Gilliland <p>This is just one example of Farfetch’s tech-driven approach, which it recently announced alongside a set of ‘Store of the Future’ technologies - designed to enhance the future retail experience for both brands and consumers. </p> <p>So, what exactly does this future look like? Here’s a run-down of Farfetch’s strategy and what it says about the wider luxury retail market as a whole. </p> <h4>Fusion of the online and offline experience</h4> <p>According to Bain &amp; Company, 70% of luxury purchases today are influenced by online interactions, with shoppers partaking in at least one digital interaction with a brand before buying. </p> <p>That being said, it also predicts that stores will play a critical role in the luxury retail market, with 75% of purchases still occurring in a physical location by 2025. </p> <p>So, which one will win out? </p> <p>According to Farfetch - neither. Instead, it predicts a future of ‘connected retail’ – a <a href="https://econsultancy.com/blog/68023-think-retail-how-brands-are-targeting-the-phygital-generation/" target="_blank">blend of the digital and physical</a> realms that will allow consumers to seamlessly shift between the two. </p> <p>The brand’s CEO, José Neves, recently suggested that this will include a combination of innovative tech in-store such as <a href="https://econsultancy.com/blog/68401-virtual-reality-content-marketing-s-next-big-trend/" target="_blank">virtual reality</a>, emotion-scanning software, and innovative payment options.</p> <p>As well as enhancing the physical shopping experience for consumers, this use of technology will also allow retailers to collect vital data about browsing behaviour in-store. In turn, this will inform online targeting, and so the cycle goes on.</p> <p>Browns, the New York-based store owned by Farfetch, will be the first to experiment with these ‘Store of the Future’ technologies. </p> <h4>Innovative online services</h4> <p>Meanwhile, Farfetch aims to enhance its ecommerce service with a selection of new digital services. </p> <p>With younger customers reportedly taking one-third less time than older customers to make decisions, 90-minute delivery specifically targets the ‘I want it now’ mind-set of millennials. A demographic that clearly wants their Gucci loafers delivered stat. </p> <p><iframe src="https://www.youtube.com/embed/3unBWk3yp5Y?wmode=transparent" width="640" height="315"></iframe></p> <p>Consumer expectations are also changing when it comes to personal aspects such as customisation and an alignment of personal beliefs and values. </p> <p>With this in mind, Farfetch has also launched a <a href="https://www.farfetch.com/uk/sets/women/customizable-NK-women.aspx">design-your-own tool</a> for shoe designer Nicholas Kirkwood. Allowing online shoppers to customise its Beya Bespoke line, it’s another example of the retailer putting greater control into the hands of consumers.</p> <h4>Will others take note? </h4> <p>While the physical shopping experience is still in demand across all sectors, it appears to present a greater opportunity for luxury retailers. This is because consumers naturally expect to leave with an ‘experience’ to go along with the actual product they’re buying.</p> <p>By offering a much more intimate and immersive experience, it is a chance for brands and retailers to forge an emotional connection – far more so than online. </p> <p>Luxury retailers have clearly recognised this, with many introducing in-store technologies to dazzle shoppers. <a href="https://virtualrealityreporter.com/dior-eyes-virtual-reality-headst-vr-fashin/">Dior launched a virtual reality headset</a> to give shoppers a behind-the-scenes look of its runway show, for instance. And Harvey Nichols introduced <a href="http://www.harveynichols.com/project-109/">Project 109</a> – an in-store concept space that hosts immersive installations and pop-ups.</p> <p>With the announcement of Store of the Future, Farfetch might just have upped the ante. </p> <p><em><strong>Related reading:</strong></em></p> <ul> <li><em><a href="https://econsultancy.com/blog/68329-farfetch-s-cmo-why-we-re-more-than-just-a-shopping-platform/" target="_blank">Farfetch’s CMO: Why we’re more than just a shopping platform</a></em></li> <li><em><a href="https://econsultancy.com/blog/67705-what-s-now-next-for-digital-technology-in-retail-stores/" target="_blank">What's now &amp; next for digital technology in retail stores?</a></em></li> </ul> tag:www.econsultancy.com,2008:BlogPost/68990 2017-04-19T11:00:00+01:00 2017-04-19T11:00:00+01:00 Why brands should be bothered about (voice)bots Nick Hammond <p>On Thursday 6th April, I attended a very impressive voice tech session hosted by the Hoxton Mix Collective. The impressive line-up of speakers included - Oscar Meary, co-founder of Opearlo, talking about ‘Alexa Design and Best Practices' ; Marc Paulina, interaction designer from Google, on ‘VUI Prototyping Tools, Design Sprints and Research Best Practice,’ and Dean Bryen, voice/AI evangelist from Amazon. </p> <p>As it was also the day that <a href="http://www.wired.co.uk/article/google-home-uk-okay-launch">Google Home was released in the UK</a>, this seemed an appropriate time to take stock of the current state of voice tech and associated opportunities.  </p> <p>So, what then did I learn? </p> <h4>Consumer expectations</h4> <p>A major issue in this space is around high consumer expectations and the challenge of managing them. We have all seen films like <a href="https://www.youtube.com/watch?v=WzV6mXIOVl4">Her</a> and <a href="https://www.youtube.com/watch?v=XYGzRB4Pnq8">Ex Machina</a> , and we therefore think we know what AI will be like in the future. As a result, a rather unrealistic benchmark has been set for the ‘real’ voice tech that is being developed today.</p> <p>In addition to this, people are less tolerant of voicebots than they are of other digital assistants. This is because voice (talking) is the way that humans naturally prefer to communicate with each other as the process is, generally, an easy one. If a voicebot cannot meet this level of ease or proficiency, then the experience can be frustrating. </p> <p>A clear message from Oscar Meary of <a href="http://www.opearlo.com">Opearlo</a> (a voice design agency) is that despite all the excitement, this is a very new area. Companies looking to develop a voicebot <a href="https://econsultancy.com/blog/68786-amazon-alexa-brands-must-be-careful-before-rushing-in/">need to be realistic</a> about what can be achieved successfully. One of the main problems can be around integration - an organisation’s digital design department may create a voicebot, but if this is not connected to back-end systems, then there is no sense of a joined-up user journey for the consumer.</p> <h4>Games or utility?</h4> <p>One speaker made the case for a more conservative ‘gamified’ approach, focusing on simple conversational design voicebots or gamebots. This simpler experience takes the user into a different world more easily than a utility bot, and because it has a more light-hearted approach; individuals are more likely to be forgiving of functionality issues. Content examples in this space are around games, such as pub quizzes and ‘would you rather’ games.</p> <p>The current scenario with voice tech and bots reminds me of the early days of the web, when brands rushed to acquire digital real estate or shopfront ‘ brochureware’ websites; where they could show of their products. It took some time before marketeers realised that consumers were not interested in visiting websites housing uninteresting and functional product information. This mistake was often repeated during the peak period of app development, where brands rushed to create their own apps, and this could easily happen again with voicebots. As always, the solution lies in providing useful content - what value can be added and how brands can add to the user experience. </p> <p>Perhaps surprisingly, the technical build of a voicebot is relatively easy via the use of available SDK’s, but the real work goes into the design of the customer interface and experience. Key areas to address in the design process include – setting expectations, limiting choices and options (to keep the process simple) and minimising pressure on the user. This last one is interesting because, again due to the nature of human voice interactions, consumers can feel under pressure if the interaction process does not feel relaxed or natural enough. </p> <p>I learnt some interesting voice tech language as well, including the importance of spending time on ‘edge cases’, ‘half happy paths’, ‘utterance expansion’ and taking a heuristic approach. All these techniques and approaches are concerned with fully testing a voice interaction (<a href="https://www.amazon.com/b?ie=UTF8&amp;node=13727921011">such as an Alexa skill</a>) to ensure a successful consumer experience. </p> <p>NB; for the avoidance of doubt, the video below is an example of a poor automated interaction and user experience.</p> <p><iframe src="https://www.youtube.com/embed/wM1P7GMnd38?wmode=transparent" width="560" height="315"></iframe></p> <h4>Voice as first brand touchpoint</h4> <p>Voice tech is important for brands because, in the future, voice will be the first brand touchpoint for the consumer. This is already taking place on mobile (e.g. with Siri), in the home (with Alexa and Home) and is moving into the automotive sector. As the importance of voice and voice tech grows, it is essential that an approach is effective and integrated, across different platforms.</p> <p>Voice is also likely to become central to the area of identification, with the increasing use of <a href="https://en.wikipedia.org/wiki/Biometrics">biometrics</a>. The human voice is considerably more distinctive and individual than finger prints, and will increasingly be used for identification purposes, as in voice PINs for example. </p> <p>Most exciting for brands is the area of sentiment analysis. By listening to a user's tone of voice, brands will not only be able to understand what consumers want, but also how they are feeling. </p> <p>Google’s perspective is that voice technology, AI, and bots are all converging and will eventually represent one technological interface. Amazon’s ambition is to provide ‘the world’s most powerful voice service’ that will ‘power the connected home’. Dean Bryan, from Amazon, sees Alexa having an impact with audio, in the home, in car and with partner brands, for example Uber and Just Eat. I rather liked the fact that Dean sees the <a href="https://www.youtube.com/watch?v=MA1hD3XRlh0">Star Trek computer</a> as the apogee of voice tech and the product they are trying to emulate.</p> <p>The key to any successful technology is that it should be invisible to the end user. A fitting end to this summary piece, is the quote shared in the session from <a href="https://www.amazon.co.uk/dp/B0116WC5JE/ref=dp-kindle-redirect?_encoding=UTF8&amp;btkr=1">The Media Equation</a> (Reeeves and Nass 1996) – ‘…Individuals’ interactions with computers, television and new media are fundamentally social and natural.’</p> <p>This is especially true with voice tech. The intrinsically ‘human’ nature of the automated voice, means that people will want to interact in a very natural and social way. Brands, becoming involved in this space, will need to ensure that this happens.</p> <p><em><strong>Now read:</strong></em></p> <ul> <li><a href="https://econsultancy.com/blog/68499-the-problem-with-voice-user-interfaces-like-amazon-alexa/">The problem with voice user interfaces like Amazon Alexa</a></li> </ul> tag:www.econsultancy.com,2008:BlogPost/68951 2017-04-03T11:44:55+01:00 2017-04-03T11:44:55+01:00 What makes Premier Inn the world’s strongest hotel chain? Nikki Gilliland <p>With total sales up 12.9% and like-for-like sales up 4.2% in 2015 and 2016, it marks a successful period for the hotel chain.</p> <p>So, what exactly makes Premier Inn so strong? Here’s a breakdown of its <a href="http://brandfinance.com/knowledge-centre/reports/brand-finance-hotels-50-2017/" target="_blank">BSI score</a> along with some further insight into what it’s been doing right.</p> <p><img src="https://assets.econsultancy.com/images/0008/5139/BSI.JPG" alt="" width="368" height="400"></p> <h3>Familiarity and consumer confidence</h3> <p>As one of the first mass market UK hotel chains to be advertised on prime time television, Premier Inn has infiltrated the consumer mind-set as a go-to brand. By using high-profile celebrities in its TV ads, most notably with comedian Lenny Henry, it has further cemented itself into the consumer consciousness.</p> <p>Alongside this sense of familiarity, Premier Inn has worked hard to instil a sense of confidence in consumers – and this has mainly been achieved by differentiating itself from the competition.</p> <p>With its ‘great night’s sleep guaranteed’ pledge, it goes above and beyond the promise of convenience or value to offer something that all consumers crave from a night in a hotel – real comfort and a sense that it is a home away from home. </p> <p>By using its partnership with Hypnos beds in this way, and even going as far as offering a money-back guarantee, it has been able to beat out similar chains that solely rely on factors like low cost.</p> <p><iframe src="https://www.facebook.com/plugins/post.php?href=https%3A%2F%2Fwww.facebook.com%2Fpremierinn%2Fposts%2F1469295463100686%3A0&amp;width=500" width="500" height="662"></iframe></p> <h3>Emotionally-led campaigns</h3> <p>Having established itself as a well-known and familiar brand, Premier Inn has widened its marketing approach to focus on more emotionally-led campaigns – recently using director Ben Wheatley for a new series of adverts. </p> <p>‘Great Aunt Mabel’s Birthday’ – a decidedly Wes Anderson-inspired ad – portrays the experience of getting ready for a special birthday party, building on relatable family-driven elements to engage viewers. </p> <p>Similarly, its ‘Working Girl’ ad depicts a different but similarly emotionally-driven experience of giving an important work presentation, which is conveniently made easier thanks to Premier Inn’s free Wi-Fi, unlimited breakfast and king-size Hypnos beds.</p> <p>With an emotional response reported to have a far greater influence on a consumer’s intent to purchase than the ad’s content – by a factor of 3-to-1 for television commercials – Premier Inn’s decision to veer into this territory is likely to resonate with consumers. </p> <p>What’s more, it aims to show the brand in a fresh and multi-faceted light, removing the perception that it's <em>only</em> about a good night’s sleep.</p> <p><iframe src="https://www.youtube.com/embed/dbpH2F-kn8Y?wmode=transparent" width="854" height="480"></iframe></p> <h3>Value-for-money and employee focus</h3> <p>With value-for-money having a direct influence on consumer satisfaction, Premier Inn’s commitment to offering a quality service for less appears to be at the heart of its success. But more than this, it is its ability to strike a balance between value and quality which sets it apart – and a reason why it has also ranked consistently highly on YouGov’s BrandIndex.</p> <p>Lastly, with staff satisfaction and corporate reputation contributing to brand strength, Premier Inn’s commitment to equality is also worth a mention.</p> <p>As well as a student placement scheme, the brand runs the Premier Inn Hospitality Apprenticeship programme to recruit people from diverse class backgrounds, regardless of academic achievement. The chain employs around 700 apprentices in the UK at any one time, offering the opportunity for apprentices to rise up the ranks and even run hotels or large teams at corporate level.  </p> <p>In doing so, it has demonstrated its position as a fair and socially-aware employer, undoubtedly contributing to its status as a powerful brand. </p> <p><iframe src="https://www.facebook.com/plugins/post.php?href=https%3A%2F%2Fwww.facebook.com%2Fpremierinn%2Fposts%2F1349966288366938&amp;width=500" width="500" height="488"></iframe></p> <p><strong><em>Related reading:</em></strong></p> <ul> <li><em><a href="https://econsultancy.com/blog/65315-which-hotel-sites-offer-the-best-user-experience/" target="_blank">Which hotel sites offer the best user experience?</a></em></li> <li><em><a href="https://econsultancy.com/blog/67658-how-hotels-can-personalize-the-customer-experience-to-compete-with-airbnb/" target="_blank">How hotels can personalize the customer experience to compete with Airbnb</a></em></li> <li><em><a href="https://econsultancy.com/blog/68025-how-hotels-can-create-a-more-convenient-customer-experience/" target="_blank">How hotels can create a more convenient customer experience</a></em></li> </ul> tag:www.econsultancy.com,2008:BlogPost/68950 2017-03-31T11:10:00+01:00 2017-03-31T11:10:00+01:00 How Shakespeare’s Globe used proximity marketing to increase ticket sales Nikki Gilliland <p>How can theatres such as Shakespeare’s Globe compete for the attention of international tourists? This was the challenge for agency, Digital Willow, which recently worked with the Globe to put a decidedly modern spin on its marketing strategy. </p> <p>Here’s a bit more on the campaign, as well as a few reasons why it worked.</p> <h3>The challenge</h3> <p>The biggest issue Shakespeare’s Globe faces is marketing with a miniscule budget. It is an educational charity, meaning it receives no annual government subsidy, largely making money from its theatre tours, box office sales and donations.</p> <p>While the Globe does naturally generate interest due to its history (and incredibly English reputation), it still tends to fall under the radar of tourists, especially up against the bright lights of Les Mis or Harry Potter.</p> <p>Competition does not only come in the form of theatre, either. When you take into account the amount of London tours and activities promoted on websites like TripAdvisor or even smaller apps like YPlan – a Shakespeare play can prove to be a tough sell.</p> <p><img src="https://assets.econsultancy.com/images/0008/5132/Shakespeare_s_Globe_mobile.JPG" alt="" width="300" height="531"></p> <h3>The solution</h3> <p>Instead of spending money on above-the-line advertising, such as billboards that could easily be ignored or go unseen, the Globe chose to use more advanced targetting to reach tourists, increase footfall and subsequent ticket sales to the theatre. </p> <p>It used GPS, geo-location techniques and programmatic buying to pinpoint advertising messages to mobile phones near Bankside and within a one-mile radius of competing sights, including the London Eye, Big Ben and the Tower of London. </p> <p>In order to prevent the potential wastage of marketing spend, it also drilled down to country level, narrowing down the target audience to tourists from Spain, France, United States, Germany and China where the Globe had previously seen ticket sale success.  </p> <p>Finally, marketing messages were also sent to tourists logging into partnering hotel Wi-Fi either early morning or late in the evening, when they were presumably planning their holiday activities.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Planning on visiting us over Easter? You might like this special offer from our hotel partners at <a href="https://twitter.com/GrangeHotels">@GrangeHotels</a>: <a href="https://t.co/mZuURm1umH">https://t.co/mZuURm1umH</a> <a href="https://t.co/Bgyieqjlgd">pic.twitter.com/Bgyieqjlgd</a></p> — Shakespeare's Globe (@The_Globe) <a href="https://twitter.com/The_Globe/status/847161446743998464">March 29, 2017</a> </blockquote> <h3>The results</h3> <p>With an increase in ticket sales of 30% year on year, the Globe’s geo-locational approach was an overall success.</p> <p>The campaign saw a click through rate of 1.08%, which is four times higher than the industry average on mobile devices. 33 days into the campaign, 1,006,550 impressions had been served to international tourists, of which 8,959 clicked and 3,381 registered on the website. </p> <p>Lastly, the overall click to conversion rate was 33.8%.</p> <h3>Why did it work?</h3> <p>While we’ve seen examples of retailers utilising this method, the entertainment industry has yet to experiment with geo-locational technology to much of an extent.</p> <p>As well as being a theatre-first, the Globe was able to hone in on its target international customer - only connecting with those that presented the biggest chance of conversion. The ads also appeared on apps that are proven to be incredibly popular with tourists, including Tube Map, London Bus Checker and XE Currency. </p> <p>Alongside a high level of visibility, the Globe's campaign also tapped into changing consumer behaviour, whereby tourists are less likely to plan ahead in favour of spontaneous and off-the-cuff experiences.</p> <p>Similarly, with smartphone use on the rise, and <a href="https://www.thinkwithgoogle.com/articles/micro-moments-travel-customer-journey.html" target="_blank">72% of travellers</a> using a mobile to look for the most relevant information - geo-locational marketing provided the perfect opportunity to target consumers looking for <a href="https://econsultancy.com/blog/68749-why-online-travel-sites-are-focusing-on-tours-and-activities/" target="_blank">tours and activities on the go</a>.</p> <p><em><strong>Related reading:</strong></em></p> <ul> <li><em><a href="https://econsultancy.com/blog/67418-what-is-location-based-advertising-why-is-it-the-next-big-thing/" target="_blank">What is location-based advertising &amp; why is it the next big thing?</a></em></li> <li><em><a href="https://econsultancy.com/blog/65068-what-is-geofencing-and-why-do-you-need-it/" target="_blank">What is geofencing and why do you need it?</a></em></li> <li><em><a href="https://econsultancy.com/blog/68051-six-case-studies-that-show-how-digital-out-of-home-advertising-is-changing/" target="_blank">Six case studies that show how digital out-of-home advertising is changing</a></em></li> </ul>