How to Measure Online Traffic that Converts Offline
Are you measuring online traffic, with the final purchase being done offline?
As internet marketing consultants, we rarely see businesses that are measuring the entire sales process from the research stage to final conversion or purchase. It’s amazing to us that in the “Age of Web Metrics”, most companies aren’t doing this. If you were a business owner or marketing manager, wouldn’t you want to be able to identify which marketing channels were producing the most sales or conversions?
There’s more to measure than just an online OR offline conversion
When we start discussing internet marketing strategies with clients, early on in the process we will ask the question “Are you measuring your online marketing efforts?” 99% of the time, the client will have some sort of web metrics tool in place, and is measuring online activity and sales. When we then ask if they are measuring online to offline conversions, we find that very few businesses have anything in place that is capable of doing this. The reality is that most business are measuring online activity AND offline activity separately. Very few are measuring cross-channel (online to offline) activity.
Why is this important?
The majority of behavioral studies done over the past few years show that most consumers are conduct online research before they make their final purchase decision. In fact, an ATG study from 2010 found that the majority (78%) are using two or more channels before they make a final purchase. Only 22% of all consumers use one marketing channel (online OR in-store OR ???) to browse, research, and make a purchase.
This is where the disconnect is… most companies have no system in place capable of measuring across channels, and through the entire sales process. In essence, they don’t have data in hand showing what percentage of offline sales were generated from online research efforts. You might be spending money on a web site that isn’t catering to the needs of your online visitors, OR generating enough revenue to maintain it, but you won’t know this unless you are able to track consumers through the buying process.
The Typical Buying Process
We’ve talked about this before (see our article Online Consumer Behavior), but the buying process is comprised of the following stages:
- Customer becomes aware of a need/issue
- They explore options to resolve the need/issue
- Refines the criteria for making a decision (price, color, etc.)
- Narrows the list of choices (based on research)
- Makes the final purchase
Based on the above, you can see that most of the activity associated with consumer purchases is based on doing research. The question begs to be asked… “Do you know if your online marketing efforts is generating traffic to your store and resulting in a sale?” Are you providing the appropriate amount for information on your web site that will produce a sale or conversion online, or within your store?
Identify Your Online to Offline Traffic
The best to find out if your web site is generating enough interest and sales offline is to have a consumer tracking solution in place.
Each business is different, and a one shoe solution won’t fit all, but to get started you need to identify those areas on your web site that are taking customers offline. For example, consumers that call your customer service line via a phone number they found on your web site would be one way they would go online-to-offline. This would create a “dead-end” in terms of tracking your online consumers to an offline purchase.
Additional ways that people would be able to go online-to-offline to make a purchase include:
- Online sign-up for email newsletters that drive consumers into a store or business.
- Social Network channels that drive consumers to your store or business.
The list is likely longer for your business, based on your marketing efforts. Are you tracking this type of cross-channel traffic? Probably not. Should you be? Yes, if you want to determine a ROAS (Return on Advertising Spent) or a return on your investment in your online marketing channels.
How do you Measure Online to Offline Traffic?
There are a number of ways that this can be done. Obviously we can’t provide all of the options here, but probably one of the best ways to track an online to an offline sale is through the use of coupons.
Online coupons with unique tracking codes can be printed and then brought into the store for redemption. This is one effective way to determine how many of your online visitors are making in-store purchases. Another great way to build your email list is to require online visitors to submit their email information, to which you can then send the coupon to.
There are many, many other ways to track online-to-offline conversions and sales. For an assessment of what this would require for your business, please Contact Us.
Who’s Your Town Crier?
In earlier times the Town Crier was the primary source of news and information. They would ring a bell to catch everyone’s attention, read their proclamation or announcement, and then post it in a common area for all to see. Do you see any similarities today?
Good question… who are the Town Criers of today’s world of media and technology? Obviously newspapers, radio, and television still play an important role when it comes to keeping many of us informed. Thanks to the internet though, other forms of media have emerged which are providing us with more personalized sources for information.
This morning I attended a breakfast meeting for a local Social Networking group. The primary topic (as always) was the role that social media is playing in today’s online marketing world. One of the groups that presented was an online marketing group with a case study about a product called GoGirl, a “female urination device that allows women to pee while standing up”.
Now, I don’t want you to become too distracted by the thought of this, but GoGirl was definitely a product that caught my attention. What I found so interesting about GoGirl wasn’t so much the product itself, but mostly the presentation which gave social media much of the credit for their success. As it turns out, I think they missed a far more important communication link that played a huge role in the initial success of their product. This missing link is comparable to the modern day version of a Town Crier.
The Town Crier in this case was a local television reporter (Esme Murphy), who after hearing about this product, sent a tweet, ”wow, didn’t know we needed it. what do you think?”. Well, needless-to-say, she has many followers in Twitter and apparently because of the response to this tweet, she decided to run a story about this product on local news.
Not long after the story ran, news about the GoGirl product spread and it was quickly picked up by the national media. Before long, the GoGirl marketing team was making appearances on nationally broadcast talk shows where they introduced this product to even more people. What great PR for a product!
So the question begs to be asked, was more attention brought to this product through Social Media? Or, was it the “Town Crier” (in this case the reporter) who was able to reach out to people via a more mainstream media outlet.
When information about GoGirl was first broadcast on television, it reached a much wider audience than Twitter. Intially Twitter was basically used to gauge interest for this product. But word about this product really reached a more mainstream audience via the Town Crier on television.
Do you know who your primary Town Criers are in today’s world? It’s an important consideration and one that should not be looked upon too lightly. It’s wise to spend time trying to find out who the Town Criers are for your specific market and audience. If you reach out to them, they could become an invaluable advocate for your product or service through their networking channels.
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Do Your Potential Customers Forget About You?
by Tom Kulzer (AWeber CEO)
Your web business probably gets product inquiries from potential customers around the globe. Inquiries come via e-mail and your web site, and you try to send information to each hot prospect as quickly as you can. You know that you can drastically increase the likelihood of making a sale by satisfying each person’s need for information quickly!
But, after you’ve delivered that first bit of information to your prospect, do you send him any further information? If you are like most Internet marketers, you don’t.
When you don’t follow that initial message with additional information later on, you let a valuable prospect slip from your grasp! This is a potential customer who may have been very interested in your products, but who lost your contact information, or was too busy to make a purchase when your first message reached him.
Often, a prospect will purposely put off making a purchase, to see if you find him important enough to follow up with later. When he doesn’t receive a follow up message from you, he will take his business elsewhere.
Are you losing profits due to inconsistent and ineffective follow up?
Following up with leads is more than just a process – it’s an art. In order to be effective, you need to design a follow up system, and stick to it, EVERY DAY! If you don’t follow up with your prospects consistently, INDIVIDUALLY, and in a timely fashion, then you might as well forget the whole follow up process.
Consistent follow up gets results!
When I first started marketing and following up with prospects, I used a follow up method that I now call the “List Technique.” I had a large database containing the names and e-mail addresses of people who had specifically requested information about my products and services. These prospects had already received my first letter by the time they requested more information, so I used the company’s latest news as a follow up piece.
I would write follow up newsletters every now and then, and send them, in one mass mailing, to everyone who had previously requested information from me. While this probably did help me win a few additional orders, it wasn’t a very good follow up method. Why isn’t the “List Technique” very effective?
- The List Technique isn’t consistent. Proponents of the List Technique tend to only send out follow up messages when their companies have “big news”.
- List Technique messages don’t give the potential customer any additional information about the product or service in question. He can’t make a more informed buying decision after receiving a newsletter! If someone is wondering whether your company sells the best knick-knacks, what does he care that you’ve just moved your headquarters?
- List Technique messages convey a “big list” mentality to your potential customers. When I used to write follow up messages using the List Technique, I was writing news bulletins to everyone I knew! I should have been sending a personal message to each individual who wanted to know more about my products.
What follow up method really works?
Following up with each lead individually, multiple times, but at set intervals, and with pre-written messages, will dramatically increase sales! Others who use this same technique confirm that they have all at least doubled the sales of various products! In order to set this system up, though, you need to do some planning.
First, you’ll need to develop your follow up messages. If you’ve been marketing on the Internet for any length of time, then you should already have a first informative letter. Your second letter marks the beginning of the follow up process, and should go into more detail than the first letter. Fill this letter with details that you didn’t have the space to add to the first letter. Stress the BENEFITS of your products or services!
Your next 2-3 follow up messages should be rather short. Include lists of the benefits and potential uses of your products and services. Write each letter so that your prospects can skim the contents, and still see the full force of your message.
The next couple of follow up messages should create a sense of urgency in your prospect’s mind. Make a special offer, giving him a reason to order NOW instead of waiting any longer. After reading these follow up messages, your prospect should want to order immediately!
Phrase each of your final 1 or 2 follow up messages in the form of a question. Ask your prospect why he hasn’t yet placed an order? Try to get him to actually respond. Ask if the price is to high, the product isn’t the right color or doesn’t have the right features, or if he is looking for something else entirely. (By this time, it’s unlikely that this person will order from you. However, his feedback can help you modify your follow up letters or products, so that other prospects will order from you.)
The timing of your follow up letters is just as important as their content. You don’t want one prospect to receive a follow up the day after he gets your initial informative letter, while another prospect waits weeks for a follow up!
Always send an initial, informative letter as soon as it is requested, and send the first follow up 24 hours afterwards. You want your hot prospects to have information quickly, so that they can make informed buying decisions!
Send the next 2-3 follow up messages between 1 and 3 days apart. Your prospect is still hot, and is probably still shopping around! Tell him about the benefits of your products and services, as opposed to your competitors’. You will make the sale!
Send the final follow up messages later on. You certainly don’t want to annoy your prospect! Make sure that these last letters are at least 4 days apart.
Following up effectively seems complicated, but it doesn’t have to be! So many potential customers are lost because of poor follow up – don’t you want to be one of the few to get it right?
What Is Your Online Strategy?
Sounds like a pretty basic question, doesn’t it? It’s actually one that we ask our clients quite often. Much of the time it’s something that our clients have never thought about. Many times we’ll receive a response like “Our primary strategy is to drive as much traffic to our web site as possible”. On follow-up we’ll ask ”what do you want your web site visitors to achieve once they’ve reached your web site”. Often times we are left without an answer.
Typically we all know what we want to achieve when we set out to do something. For example, if we are going to the grocery store, we already know what we need to buy, in fact many of us will prepare a shopping list so we don’t forget. If we are going on a long business trip or vacation, we pack accordingly for the occasion and climate. But, when it comes to online marketing, for some reason most companies decide to take on a herd mentality when it comes to their marketing efforts. They basically follow along with whatever the latest trend is, without giving much thought as to how it will help them achieve their ultimate goals and objectives.
Are You Part of the Herd Mentality?
Today, most companies make use of a variety of online marketing approaches - whether it be a web site, a blog, a Facebook page, email marketing, etc. But have they ever really mapped out a clearly defined strategy with a list of goals and objectives related to their overall marketing efforts? Have they really given much thought as to how their web site or Facebook page relates to their overall marketing objectives, both online and offline? Our experience tells us that the answer to this is “No”. We find most companies are overly occupied with the notion that they need to drive as much traffic to their website as possible, in hopes that this will increase their chances for a sale or lead.
How to Catch Lobsters, Not Cod
This approach (driving as much traffic to a web site as possible) is a lot like casting a huge net out into the online world and then pulling in anyone that comes along irregardless of whether they are a potential customer or not. It’s analogous to a lobster fisherman casting a wide net out into the ocean in order to catch lobsters. The downside with this fishing approach is that he will bring in mostly cod, not lobsters.
Why is this? Well, the reason he ends up with more cod is because lobsters live on the bottom of the ocean, not at the top where the net was thrown. If a lobster fisherman really wants to catch lobsters he needs to use a different strategy. He’s going to need to use a lobster trap and then place that trap where the lobsters are living, on the floor of the ocean. This ultimately becomes his strategy for success, with the result being more lobsters caught. It’s more efficient to fish this way.
The Recommended Approach
When you look at your online marketing efforts, are you catching cod or lobsters? Are you spending 100% of your time trying to catch lobsters at the surface of the ocean, but instead ending up with cod? If so, then basically you need reevaluate your online strategy. You really need to first determine who your potential customers are, and then develop a strategy which will reach out to them in the online world. If you’re trying to promote a product via Facebook, and your target market does not use Facebook, then all you’re doing is wasting time and money.
Our recommended approach is to first fully understand your consumers from head to toe. Find out if they are looking for your type of product or service online, and if so how likely are they to convert via an online promotion. You really need to first fully understand your targeted consumer before you can create a strategy that will reach out to them.
Establishing an online marketing strategy containing a list of goals and objectives will allow you to become more efficient at attracting potential customers online. The immediate advantage with this is that your customer acquisition costs will go down, and you’ll become more efficient because now you are focusing in on attracting specific visitors that will convert into customers. Bottom line, first establish a strategy THEN develop a solution that will reach out to your market and allow you to reach your goals more quickly. Go after your market with an appropriate online strategy and solution!
The Online Sales Process
How Is Your Online Sales Process Working?
Are you reaching out to prospective customers at that exact moment in time where they are looking for a specific product, service or information or is your web site just another stop along the way to your competitor’s web site?
The importance of matching web site visitor expectations to their online goals and objectives is likely the single most important consideration when it comes to designing a successful online experience or marketing campaign. Even in today’s Web 2.0 world, most web sites continue to present prospective customers with a confusing menu of links that site owners think will lead their visitors to their utlimate goal or objective.
The net outcome of this type of design and activity shows up as abandoned activity or low conversion rates. As a web site owner or manager, are you willing to risk losing a prospective customer or client?
The Basic Sales Process
If you’ve ever attended a sales training program or class, you’ll discover that there are basic steps that all successful sales people follow in order to get additional business. These steps are:
- Prospect for Customers
- Build Rapport with Customer
- Qualify the Customer
- Present the Product or Solution
- Close the Sale
These are basic steps in the sales process that have been successfully utilized over and over. These steps can also be applied to the online sales process.
The Lost Sales Opportunity
Many online marketers probably feel that they have built these steps into their online experience. The reality is that few web site designers are familiar with the standard sales process listed above and they fail to incorporate these into their designs. This results in a site that fails to engage site visitors who may turn into potential clients or customers.
The Solution
We will help you prepare an online marketing plan which will address your site visitors at each stage of the sales process. We will also work with you to design a plan that will bring in more targeted prospective customers and clients to your web site. We’re not just interested in generating more traffic to your web site, we’re interested in helping you successfully convert those visitors into customers or clients.
Contact Us today for a free, no obligation web site sales process analysis.
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