Multichannel Merchant
  • Ecommerce
  • Marketing
  • Operations & Fulfillment
Subscribe / Advertise
HOME
  • Ecommerce
    • Marketplaces
    • Mobile
    • Payment
    • Security
    • Shopping Cart
    • Usability
  • Marketing
    • Advertising
    • Catalog
    • Content Marketing
    • Email
    • Search
    • Social
    • Video
  • Operations & Fulfillment
    • Contact Center
    • Customer Experience
    • Delivery
    • Distribution Center
    • Fulfillment
    • Order Management
    • Returns
    • Shipping
    • Workforce
  • Resource Center
    • Media Kit
    • Live Events
    • Podcasts
    • Virtual Events
    • Webinars
    • Research
    • Submit A Release
    • Videos


Follow Us

Facebook
LinkedIn
Twitter
Google Plus
YouTube
  • Subscribe
  • Advertise with Us
  • Subscribe
  • Advertise with Us

Using Split Testing and Retargeting to Boost Mobile Conversions

MCM staff
December 28, 2012

Back in 2010, even with all the recession-fueled belt-tightening, retailers were delighted to find that holiday sales had jumped 5.5% between early November and Christmas Eve.

That was the best news retailers could have gotten after widespread economic pain drove down end-of-year sales in the previous two holiday seasons. Sales during the 2011 holidays saw another bump, of 4.1%. And this year analysts are expecting yet another increase, to a record $568.1 billion.

Clearly, consumers aren’t easily deterred from their annual quest to snag the top toys, fashions and electronic gadgets. Brands and retailers are trying to keep up. They’re predicted to devote twice as much money this year as they did last year to reaching holiday shoppers on their ubiquitous mobile devices.

It’s evident, however, that some mobile messaging campaigns, whether push notification, SMS or mobile email, aren’t increasing sales. Why? Because the messages can be irrelevant, ill-timed or excessive. 69% of mobile phone users drop marketing updates due to message overload while irrelevant messages drive 60% to unsubscribe. Today, brands and retailers have the power to better connect with consumers and keep them engaged during the holidays – and year round – by measuring the effectiveness of their messaging.

Here’s an example: a well-known toy maker with a mobile app is offering 15% off on the hottest movie tie-in action figures. The brand deploys two versions of the same message to app users who fit the profile of a mom with a grade-school son:

A: “Holiday Special 15% off on Smash Hit X action figures!”
Message A had a 40% open rate and a 20% coupon click rate. For every 100,000 messages sent, 8,000 coupons were clicked.

B: “Hey Moms! 15% off on all Smash Hit X gift items!”
Message B had 30% open rate and a 30% coupon click rate. For every 100,000 messages sent, 9,000 coupons were clicked.

Message B wins even though it had a lower open rate, because it had a higher coupon click, or “conversion” rate (9% vs.8%). That’s A/B split testing, sending out different variations of a message to see which yields the highest ROI. It’s long been in use in traditional and online media and is now making inroads on mobile.

Our fictional toy maker isn’t quite done, however. The company wants to refocus its push notification efforts to reach particular message segments. These include moms who did not open any messages, and moms who did open a message but did not convert.

The company “retargets” those consumers, using gathered data to make follow-on messages even more relevant and boost conversions further, while avoiding the main pitfall of mobile marketing: being seen as “spam.”

I recently had a conversation with an executive at a major retailer who told me the company does not have an app and does not do mobile marketing. Why? They are so afraid of having their messages perceived as “spam” and alienating customers, it’s kept them from making the leap.

That retailer is doing well, but not every company can afford to make the same decision. Mobile is expected to overtake desktop as the primary point of Internet access by 2014. And the National Retail Federation predicts that over half of all online revenues will be made through mobile by then. Smartphones and tablets, those most personal of devices, will be the surest way for brands to reach consumers.

Mobile messaging analytics, as part of a well-thought out mobile marketing strategy, can help brands and retailers gain actionable business intelligence. They can then use that data to craft push, SMS and mobile email messages that are relevant, add value and are selectively timed.

And this is true all year round, not just during the end-of-year season. Brands and retailers can use analytics to drive retention, conversions and ROI during any gift-giving holiday, such as Mother’s Day and Valentine’s Day.

So, be it toys to place under a Christmas tree, a new necklace for a sweetheart or a new iPad for Mom, gift-giving holidays continue to draw mobile-toting consumers by the millions. By giving these consumers their space and targeting them only with offers that matter, brands and retailers stand to reap the sales rewards of consumer goodwill – and of powerful engagement that lasts all year.

Brendan O’Kane is CEO of OtherLevels.

RELATED TAGS: Mcommerce, Technology

Partner Content

Hincapie Sportswear Finds Omnichannel Success in the Cloud - Netsuite
For more and more companies, a cloud-based unified data solution is the way to make this happen. Custom cycling apparel maker Hincapie Sportswear has leveraged this capability to gain greater visibility into revenue streams, turning opportunities into sales more quickly while gaining overall operating efficiency. Download this ecommerce special report from Multichannel Merchant to more.
The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.

Webinars

The Definitive Amazon Seller’s Guide: A Strategy-Building Session

Voice-Shopping: What’s in Store for Ecommerce Companies?

How Unified Data in the Cloud Can Power Business Growth

Redefining Customer Lifetime Value

Running with the Big Boys: Ecommerce Tools for the Midmarket

Latest Research

Ongoing Labor Shortage Underscores Need for Optimized Warehouses

Merchants Differentiating in the Last Mile, Returns, Outsourcing

The State of the Catalog is Alive and Well

Meeting E-Fulfillment Challenges as Expectations Rise

How to Evolve Your Email Marketing Strategy

Blogs

How (& Why) Retailers Can Do Big Data in the Cloud

3 Ways to Speed up Your Ecommerce Website

How to Assess Your Drop Shipping Customer Service

Why Ecommerce Customers Want Buy Online Deliver From Store

Individualization is the Next Step in Advanced Personalization

About us

  • About us
  • Press Releases
  • Privacy Policy

Advertise

  • Media Kit
  • Editorial Calendar

Events

  • Ecommerce Operations Summit

Related Sites

  • Chief Marketer
  • Event Marketer
  • LeadsCon
  • LeadsCouncil
  • PR News

Directories / Jobs

  • MCM Source Directory
  • Top Commerce
  • Top 3PLs
  • Jobs

Sign up for MCM

Get the Ecommerce, Marketing & Operations info you need when you need it.
  • About us
  • Advertise
  • Jobs

Follow Us

© 2018 Access Intelligence LLC - All Rights Reserved.