Following the success of last year’s meetup, we invited our partners to come and update a selection of our clients on what’s new and exciting, and give some insight in to what’s happening in ecommerce today.
First up we had Ometria, talking about ‘What shopping will look like in the next 3-5 years’
Brands will get more emotional
It is looking likely that there will be greater emphasis on cultural relevance. With 60% of consumers saying that brands need to make it easier to see values and positions at the point of sale, such as brands like Lush eradicating it’s use of single use plastic, and Waitrose launching a cookery school.
Retailers will need to shift from transactional loyalty to emotional loyalty. 79% of customers are very satisfied with loyalty programs with high personalisation and loyalty programs that make customers feel special and recognised had 2.7x more satisfied members.
The rise of the ‘experiential store’
More and more brands are now making the move towards fewer physical stores, and instead putting more thought behind their flagships. The idea being that a retailer offers consumers a chance to buy an experience rather than just an object or service.
“Consumers are increasingly more likely to spend money on experiences and entertainment than goods.”
On the other end of the scale, more and more digital-first retailers are opening brick and mortar outlets or pop up stores. Earlier this year saw online giants Ebay open a series of concept pop up stores, and go one step further with a brick and mortar store open in Wolverhampton offering a number of small businesses a space to operate from. In the US alone, digitally native brands are set to open 850 stores in the next 5 years. However 15% won’t actually be selling anything, but acting as showrooms only.
The rise of convenienc ecommerce
2019/2020 looks set to see the rise of subscription ecommerce enter the ring. Advances in delivery are causing consumers to outsource mundane / repetitive purchasing tasks, giving brands an opportunity to increase CLV and loyalty. Services such as the Amazon dash, Who gives a Crap toilet roll and Dollar Shave Club have seen a substantial rise in subscribers over the year.
Next up was Veeqo on ‘How to be a successful Omnichannel Retailer’
Playing on the (what was at the time) culturally relevant Love Island bandwagon, Robyn demonstrated how brands such as Missguided, Superdrug and V05 have succeeded in increasing sales by being associated with the hugely popular show.
In a nutshell- who are Veeqo
Veeqo is used by fast-growing omnichannel retail brands, helping them sell and ship everywhere. They will handle the inventory, orders & shipping for retailers & brands.
It started out when retailer Matt warren wanted to grow his ecommerce business.
Matt was running a multi-million pound retail business, but found it almost impossible to manage multiple orders from multiple marketplaces. He thought there had to be a better way to run a successful ecommerce business.
That’s why he created Veeqo.
Then was Klarna with ‘The Customer of The Future: How Gen Z Buys and Spends’
Gen Z is a cultural term used to describe anyone born between 1995 & 2015, making them aged between 4 and 25 years old.
It is predicted 40% of consumer spending will be contributed my Gen Z by 2020, with 2.6 being the numbers of hours of content a Gen Z consume more than the average daily across all devices.
The Instant Gratification Generation
According to Forbes, 60% of Gen Z shoppers won’t use apps or websites that load slowly or are difficult to navigate. And over half would pay more than £5 for one-hour deliveries.
72% of Gen Z would spend more for sustainable products
83% of Gen Z said it is important brands show they are pro-equality
55% would abandon a purchase if they felt a brand was not sustainable.
90% of Gen Z consumers trust peer recommendations, whilst only 30% trust adverts
Millennials and Gen Z care about brand image and flexible payments rather then value for money – Younger shoppers associate loyalty with things like promoting a brand to other people (25%), and being emotionally attached to or sharing values with a brand 20% – Retailers recognise this — 68% say customers are more likely to shop with brands that share their values and the same amount said they were investing more to show they share their customers’ values.
Last but not least was Vervaunt with ‘Shopping and Social’
The Evolution of Google Shopping
Shopping visibility & importance has increased consistently since 2013 with a 67% increase in shopping traffic within the Apparel category (2018 Vs 2017)
Google Shopping Ads in the UK now account for 82% of non branded retail PPC spend, growing 42% year on year in Q4 2018. When retailers display both text and shopping ads they drive 120% stronger conversion rate (Google)
The growth in traffic growth has been driven by consistent changes and improvements to Google Shopping with improved product feeds and extensions.
Google Shopping Feed Attributes
Product titles have the largest impact on your product relevance and how often your ads appear against searches. One initial thing to remember is the title for Google Shopping doesn’t necessarily need to be the main title of the product, it could be a separate attribute in Magento.
You should add as much detail to your product descriptions and other attributes as possible. In a recent Google study, including more detailed descriptions and extra attributes, such as material and colour led to 10%-20% more impressions.
Google categories help Google understand what you’re selling so that we can better connect your ads with search queries from potential customers. Keep in mind that you can also use these product categorisations later on to help you organise your advertising campaign in Google Ads.
Product type, you define for your product. Although an Optional attribute within the feed – the product type allows you to add in more descriptive terms to your product category in comparison to the Google categories and will help you rank for searches.
How to optimise shopping campaigns
- Negative keywords & cross match negatives
- Search terms should be monitored closely (scripts to flag performance)
- Adding electronic as a negative to your standard drums ad group is an example of a cross match negative
- Create and manage a High Priority campaign
- Top sellers, sale, best margin etc
- Branded and non-branded campaigns
- You want to maximise coverage on your branded terms and manage spend / performance through generic terms
- Create a medium priority campaign for generics and exclude your “brand name”
- Then create a low priority campaign for branded searches (excl. All exact generic terms)
- You could do this for other terms as well e.g. product names (air max)
- Audience signals to further optimise campaigns
- RLSA lists based on site behaviour, emails and GA (upweighting abandon cart etc)
- Similar audiences, demographics and in-market audiences (when available)
- Bid sim data & Diminishing returns analysis
- Automated bidding
- Other signals to adjust your bidding
- Location, time of day, day of week, device etc.
- Keyword level bidding via script
- Scripts available which automatically update your negative keywords
- These will exclude all keywords triggering ads, not in your pre-approved list
- Over-time you have a campaign which serves to only the queries you have selected
A huge thank you to all of our partners and clients who attended. It was a huge success, a great opportunity for everyone to meet, and the drinks were on us!