Understanding the full value of mobile: adidas and RadioShack drive in-store traffic with mobile

Thursday, February 28, 2013 | 7:00 AM

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We live in a multi-screen world where people are constantly connected and moving seamlessly across devices. Not only do mobile devices keep us connected anytime and anywhere, but they play an increasingly important role in shopping, both online and offline. With mobile, consumers no longer just take linear paths to purchase that begin and end on the same device. Instead, there are a range of customer journeys - like starting on a smartphone and ultimately buying in-store, continuing on a different device, or making a phone call.

This era of mobility is bridging the digital and physical worlds, so marketers need to fully understand mobile’s impact both online and offline, and evaluate how each of these actions applies to their business. Here’s a look at two brands who’ve invested in understanding the full value of their mobile efforts:

adidas
Being locally relevant is key for any brick and mortar business, and adidas worked with its agency iProspect to leverage mobile’s power to reach local customers. They recognized that in order to build an effective mobile presence, they had to pivot their thinking to understand how mobile drives value beyond mobile commerce, particularly in-store sales. “If we look at a 1:1 response or 1:1 measurement of what our media budget is driving on a mobile site, we're missing a big part of that picture. As performance marketers, a lot of the times we look at direct responses, and what mobile is requiring us to do is redefining direct response," says Kerri Smith, head of mobility at iProspect.






adidas and iProspect partnered to estimate the value of each store locator click on their mobile website. Based on internal benchmarks, iProspect theorized that 1 out of every 5 people who visited the mobile site store locator page went into an adidas store. In-store conversion data from adidas indicated that around 13% of shoppers who go into stores completed a purchase, and that their average order value is $71. Since an active search usually demonstrates stronger intent to purchase, iProspect applied a 20% conversion rate and an $80 average order value. As a result, they determined that 4% of the people who clicked on a store locator translated into an actual sale for adidas, meaning that each store locator click is worth $3.20.

To put that in perspective, for a hypothetical mobile investment of $1 million, in-store sales from store locator clicks was an extra $1.58 million beyond direct mobile purchases. [Download the full case study here]

RadioShack
To fully understand how mobile drives in-store sales, RadioShack collaborated with its agency Mindshare to redefine mobile success: “User behavior is much different on smartphone compared to the desktop experience. It became obvious that to be successful, we had to measure mobile performance by focusing on different criteria,” says Lisa Little, Search Marketing Manager at RadioShack.

RadioShack worked with Mindshare to understand how mobile impacted foot traffic into stores. Using mobile search ads to promote their mobile site, they found that 36% of the clicks were going to the store locator page. Based on internal studies, the teams estimated that 40-60% of people who used the store locator on a mobile device visited a store. RadioShack’s internal analytics team also determined that approximately 85% of customers who visited the store as a result of the store locator made a purchase in store. [Download the full case study here]

A holistic view of the mobile customer
This new model can help marketers better understand the return on investment they’re getting from their mobile efforts. Both companies also found mobile success because they developed a holistic view of their mobile customers and created strong synergies across all marketing channels. For example, RadioShack’s social, email, digital, video and search marketing teams work collectively to create the best user experience possible for mobile customers. Little says, “This allows us to better understand the behavioral path of our customers, from the initial research phase through the final purchase stage including all the marketing they were exposed to along the way. To be successful, you have to adopt this holistic vision of the mobile user behavior.”

Posted by: Julie Pottier, Product Marketing Manager, Mobile Ads

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