The weight of offline is much greater, but why the difference in growth speed compared to online? What is the key factor?
This is an article originally written on DoctorMetrics . measurement-offline-onlineCurrently, the increase in Internet sales grows 10 times more than that of physical stores . In recent years, this is the type of headline that has been constantly repeated, causing no one to doubt the online channel, rather the opposite. As a consequence, telemarketing list providers stores (brick and mortar) have lost prominence, but we must not forget their true role, since they currently generate 98% of retail sales versus the 2% generated by ecommerce in Spain. Many of the industry leaders have understood that these two channels are not mutually exclusive; on the contrary, they are complementary, and the user makes use of them interchangeably. An example of this is Apple, and its careful in-store experiences, and another is Amazon , which being an online giant, is considering opening physical stores. Because right now? Something is changing. Indeed, the weight of offline is much greater, but why this difference in the speed of growth with respect to online? What is the key factor?
The key piece, measurement
The ease of acquiring a product for the user, whenever and wherever they want , is one of the key factors that makes the online environment the ideal breeding ground for sales to take place. In addition, given the fierce competition without geographic limitation or control on costs , it makes Betting Email List prices even more attractive to buyers. All this favors the growth of this channel compared to the traditional ones.Surely, these points in favor are nothing new, and many will sound identical to the advantages of other channels, such as catalog sales (so widespread in the USA). In any case, there is a differential factor that occurs online, and that offline has not been achieved until now: being able to measure everything .What in the traditional world requires many means and money, its very measurement in the digital environment becomes almost immediate and effortless .The consequences of all this are more effective marketing actions , more knowledge of what the user needs , being able to activate and deactivate changes to try to differentiate themselves at minimum cost, etc.In the following video you can see the recreation of a typical action used online, and controlled by measurement, applied in a hypothetical physical store.Against this background, the bet on the Internet that most large retailers have made seems logical.The online world is not a panacea
The online world suffers from two handicaps:Not being able to interact with the product
Not being able to get it instantly
Precisely, these are two of the advantages that the offline world has and that many retailers have understood to, from the online, invite to their physical stores in order to collect their product, return it, test it, etc.Unfortunately, the process is also taking place in reverse. The consumer visits physical stores to interact with the product and then buy it online in the comfort of their home and perhaps with the possibility of obtaining a better price. This process is called “Showcasing” .Obviously, the solution is not to avoid technology, but to use it to provide a better user experience, build personalized offers depending on the environment in which they are and, ultimately, link the information we have about that person to offer them the best multichannel or omni-channel deal . Again, measurement is the key.E-commerce will land offlineIt is precisely the current technological advantage of large ecommerce over traditional retailers, which is making companies like Amazon seriously consider going offline.In my opinion, there are two missing factors for this to take place and they are:The possibility of measuring offline as well as online . The obsession with the analysis and use of information is precisely what has led Amazon to be where it is, and therefore it will not give it up.
In addition, a link is necessary to act as a bridge between the different channels .The second point we have here for a long time, and they are smartphones . Do we already have the desired offline measurement?The need to measure offline as well as online
Trying to measure physical stores is not a current need, much less, but has been dealt with from different areas:Market research and field work
What none of them has achieved in an easy way is to be able to measure to generate effective marketing actions and even less to link channels, to take into account who we are addressing and what we must offer.This is precisely what we will explain in the next post, the pros / cons of the systems so far, the new solutions and the birth of the TaggingBox concept .We invite you to see the demonstration of this technology at the GAUC in Barcelona on May 28.