Tracking online to offline sales and measuring ROI on digital programs is a challenge, but for Staples Canada (NASDAQ:SPLS) a recent test uncovered key words that drove a 200 percent increase in incremental ROI.
The retailer partnered with Kenshoo and RevTrax to implement and measure a program designed to identify popular key words and then track them to redemption, either online or in-store. And the results are likely of interest to those retailers looking to use online marketing to drive store visits.
Staples Canada used RevTrax couponing technology to create and track a digital coupon offering consumers $10.00 off a Copy and Print order of $30.00 or more. The coupon could be printed, accessed as an online e-commerce code or displayed as a mobile landing page. RevTrax then analyzed the redemption data to enable the matching of search campaigns and keywords to in-store transactions. Kenshoo integrated the keyword-level conversion data into its platform, enabling campaigns to be optimized in real-time for performance by tailoring ad copy and informing bid policies to drive more coupon redemptions.
"We had several goals for this campaign, including driving online and in-store sales and uncovering deeper insights into customer behaviors and coupon redemption patterns," said Arthur Marcoviciu, digital marketing supervisor for Staples Canada. "We were able to efficiently and effectively unite and optimize our online and offline marketing efforts for maximum ROI. For example, we learned that business customers drive the highest average order value when converting through non-brand keywords. Since most coupon redemptions occur in-store, we wouldn't have been able to drive this level of cross-channel insight without this partnership."
During the three months of the campaign, the retailer saw dramatic improvement in critical key performance indicators including a 200 percent increase in incremental ROI and a more than 9 percent increase in average weekly redemptions. Redemption increased 148 percent from the first to the final week and more than 1.4 million impressions were generated while the average cost-per-click dropped 11 percent.
"The majority of purchases still occur in-store, so evaluating the success of a digital marketing campaign through an ecommerce-only lens provides a limited and inadequate definition of success," said Jonathan Treiber, CEO and co-founder, RevTrax. "Working with RevTrax and Kenshoo, Staples Canada went beyond the status quo and identified the search campaign elements driving the most in-store revenue, ultimately creating a cycle of learning and optimization to reduce costs and improve omnichannel effectiveness."
According to the retailer, this linking of transactional data from the online campaign to offline conversions produces a hard-to-achieve holistic view of its omnichannel campaign performance. It allowed Staples Canada to better optimize campaigns based on in-store transactions similar to e-commerce transactions.
-See this Staples Canada press release
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