Notes and Thoughts on Grocery 2.0

In my opinion, understanding web analytics sometimes feels like predicting the weather. There are some standards in place already. Like 90% chance of rain probably means it’s going to rain. But, more often than not, some level of disagreement exists. Metrics definitions, the validity of measurement and third party reporting/accreditation are sources of debate for web analysts, salespeople and advertisers. So, when everyone’s prediction differs, how do you know who’s right?

One of the buzz words that attempts to answer this predicament is transparency. Transparency means defining how you will measure something, applying industry standards when possible and being consistent.

With that in mind, I have defined the most common online metrics. Let the clarification begin!

Rachel
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Clicks: A metric which measures the reaction of a user to an Internet ad or linked editorial content. There are three types of clicks: click-throughs, in-unit clicks and mouseovers.

Click-through rate (CTR): The average number of click-throughs per hundred ad impressions, expressed as a percentage.

It is important to understand the limits of click-through rate as the sole metric by which an advertisement’s effectiveness is measured. CTR measures the percentage of people who clicked on the ad to arrive at the destination site, but does not include the people who arrived at the site later as a result of seeing the ad. CTR is a measure of the immediate response to an ad, but not the overall response to an ad.

Clicks had more value when Web site traffic was accepted as a measure of success regardless of where users went after they landed on the site. The trend towards profitability, along with advanced tracking capabilities, has resulted in less interest in click-through rates and more interest in conversion rates.

Conversion rate: The percentage of visitors who take a desired action.

Examples of desired actions include sales, registrations, downloads, and virtually anything beyond page browsing. A high conversion rate depends on several factors: the interest level of the consumer, the attractiveness of the offer and the ease of the action to name a few.

The interest level of the consumer can be maximized by reaching the right visitor, in the right place, and at the right time.

The attractiveness of the offer depends on relevancy, includes the value proposition and how well it is presented. Small, impulse items (like groceries) typically have a higher conversion rate than large, shopping items.

The consumer’s ease in completing the desired action is largely dependent on site usability, intuitive navigation and fast loading pages.

Demographics: Common characteristics used for population or audience segmentation, such as age, gender, household income, education, marital status, etc. A network with a strong demographic that is in line with an advertiser’s desired target audience will be more effective than a broad national network.

Impression: A single instance of an online advertisement being displayed. Ad impressions indicate how many times an advertisement is seen in total.

Page View: A request to load a single HTML page. Page views indicate how many times a webpage is seen in total.

Search Engine Optimization: The process of choosing targeted keyword phrases related to a site, and ensuring that the site places well when those keyword phrases are part of a Web search. For more information on SEO and Google, check out Google Papers , a list of publications and white papers written by Google employees.

Stickiness: The amount of time spent at a site over a given time period.

Unique Visitors: Individuals who have visited a site or network at least once in an allotted time frame, often a 30 day period.

Most measurements of unique visitors are estimates. Sites often calculate unique visitors based on IP address information and through cookies. However, many factors may skew the results.

Traffic rating companies typically calculate unique visitors by monitoring actual usage of a group of volunteers (called panel data), then applying the results to a network’s population. Some, notably Quantcast , use direct publisher data and panel data.

Traditional media ads only have the power is to “interrupt” people’s lives. Seth Godin’s book Permission Marketing; Turning Strangers into Friends and Friends into Customers discusses how to grab someone’s attention. First you need to get his or her permission with some kind of bait–a free sample, a big discount, a contest, an 800 number, or even just an opinion survey. Once a customer volunteers his or her time, you’re on your way to establishing a long-term relationship and making a sale. “By talking only to volunteers, Permission Marketing guarantees that consumers pay more attention to the marketing message,” he writes. “It serves both customers and marketers in a symbiotic exchange.”

Or in email mail terms that means Opt In. Duh, by getting permission to talk to customers, you are developing a personal relationship with them, where they actually enjoy receiving correspondence.

The book is a great read.

Enjoy,
Rebecca

Nowadays, it seems everyone is searching for that one interactive marketing tool that proves to be the most effective? Is it display? Email? SEO? Mobile?

The answer is none of the above.

No single marketing tool, by itself, will yield the best results. Yet marketers continue the hunt for that holy grail of ROI: Wasting time and energy, when the solution is right in front of them. Step out of that one-size-fits-all mentality. Instead of none of the above, focus on all of the above.

To reach consumers on their level, you need to implement 360 degrees of online advertising.

Stop thinking like marketers and think like the consumers we all are. Are we persuaded by the same methods? Do we have the same needs? So far, marketers have only scratched the surface of online marketing possibilities. Use that to your advantage.

Utilize multiple tools to reach consumers.

Display advertising, though considered doomed by many, is an effective tool when used correctly, in the right setting, for the right consumer. In the past month, I have integrated value add display advertisements across our suite of online grocery retailers. The ads are useful and relevant to consumers searching for recipes, browsing weekly specials and creating shopping lists. The result has been astounding: An average click through rate of 0.41 across the network. Display works in the retail setting when providing relevant content to consumers. In less than a month, our retailers have increased customer retention and engagement has skyrocketed.

Harness the power of email marketing and SEO to increase sales, drive traffic and acquire new customers. Retailer emails sent across the MyWebGrocer network generate an average 0.26 click through rate. Email, like display, must be relevant to avoid consumer burn-out. If you don’t have a relevant email, it’s better not to send anything and wait until you do.

And, draw on SEO as a powerful customer acquisition tool. Spend time narrowing your keyword bids to what is most effective for you and test, test, test. A 12% click through rate for SEO, our network’s current performance, is considered very good.

Don’t limit yourself to the interactive tools mentioned here. The goal in implementing 360 degrees of advertising is discovering the right atmosphere in which certain tools perform best, and mixing and matching across your network. There are many tools we use that I have not mentioned, including e-commerce keyword targeting, sponsorship opportunities and merchandising. The key to remember is: to maximize ROI, target consumers in a variety of ways. You will see better results.

Rachel

Have you ever tried to download a program or update only to find out that you’ll have to download another program to make whatever you just downloaded run? Or how about when you fill out a form but overlook a box and the whole thing gets reset? Infuriating isn’t it? Makes you question whether it’s really worth your time, right? I didn’t want that (insert product name here) anyway!

We’ve all had these experiences. So what can we do about it? As consumers we can leave the company feedback, as the creator we can conduct some usability testing!

What is usability you ask? To quote Wikipedia:

Usability is a term used to denote the ease with which people can employ a particular tool or other human-made object in order to achieve a particular goal.

How easy is it to accomplish a task using a tool?

There is nothing worse than having a frustrated customer. Imagine your qualified leads, searching you out looking for your product only to walk away because the door to your store sticks and they can’t get in. That won’t happen you say. But it will. Once a consumer lands on your website you have 8 seconds to capture their interest and convert them. If there are any roadblocks in the way there’s a good chance you’ve lost them.

So I ask you, when was the last time you actually used your website? Or better yet, watched someone use your website? Do you know how many clicks it takes to send your company an email? Where is the contact button on your website? How long does it take for the homepage to load and do you make the customer sit through a flash video after that or can they skip it? How usable is your website?

It’s easy to get overwhelmed. Take a deep breath. Start small and fix the little things first. But please before you do anything, ask someone who doesn’t work for your comapny (your mom, your partner, your sister…anyone) to complete a simple task on your website and let you watch them. Take notes, see where they click and let them struggle. It may be painful to watch but it’s more painful to lose all those wonderful visitors that sought you out just because your navigation doesn’t make sense.

You’re not alone - EVERYONE has usability issues. Even Bill Gates can’t figure out how to download a program from the Microsoft website. Really, it’s true, read this - you’ll feel better.

For more information on how to improve usability start here:
Jakob Nielsen’s Usability 101
Usability Professional’s Association
A List Apart

: Elise

I’ve been asked by lots of folks how Online Grocery Shopping can help them during tough economic times. It all boils down to time. How much are you willing to pay for time?

Many people spend more time on the job during tough economic times. Interestingly enough, productivity goes up because people work harder to keep their jobs as well as make their companies remain strong. As an example, if I can spend a few hours more on the job and still get the groceries I need using online grocery shopping, what a great way to manage the time I do have. I can pickup my order or have it delivered and get home to spend the time I do have with my family. The service fee is well worth while. Plus my personal shopper picked all the best items for me so I’m not spending time looking for what I need or hopping store to store to get it.

Spending a few dollars to get a few hours of work and family time back; what a gift.

Dave