Context
In traditional retail and e-commerce, the cost structure has been increasing on all sides during the last months (raw materials, containers, air freight, but also marketing and advertising campaigns…). Marketing plans are under the microscope, in a context where it is becoming increasingly difficult to precisely measure the performance of investments, for two reasons.
In 2021, the consent for cookies on e-commerce websites was introduced in the UK, in France, etc. Although some brands are trying to create efficient paths that encourage consumers’ consent, there has been a notable loss in terms of customer knowledge (browsing data) but also of advertising metrics. The Apple’s restrictions on cookies tracking on IOS is another factor. As a result, retailers have lost up to 50% of their IOS user data, because they have been “opted out” from Facebook, Instagram and Snapchat. Indeed, Apple users are actually over-consumers in terms of e-commerce.
The marketing teams of retailers must therefore improve their customer knowledge, in a context of increasingly strict GDPR rules. They need to create more proximity and relevance, to improve the value proposition and conversion.
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Key figures
– According to Forrester, wining new customers costs 5 times more than keeping them
– In 2021, the conversion rate was 6.8% for grocery websites, 3.3% for fashion, 2.8% for home and decoration and 1.4% for electronics (Contentsquare, 46 billion sessions surveyed across 3,870 websites)
– Meta said that in Q1 2022, average advertising rate increased by 30%
– France: On average, 30% to 35% of users refuse cookies (Squaze barometer on 17 e-commerce websites)
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Best practices
– Relevant and personalised content. In marketing, personalised messages are mandatory. At Alltricks.com, a web site which specialises on cycling equipment with Decathlon as a shareholder, the marketing team works with Salesforce for CRM, with Dartagnan for e-mailing campaigns and with Tinyclues for segmentation. In 2021, Alltricks had 700,000 opt-in clients in a database and kept them informed with newsletters. However, tailoring e-mails as fully interactive is a key priority. “Every month, Alltricks sends around 6 million emails, and a really active customer receives 10 to 15 e-mails,” explained Benoit Garnero, CRM Director, to Mind Retail.