Amazon is changing the game for retailers. Amazon Marketplace and Amazon Retail sales are roughly equal, totaling $250 billion/year. That sounds like a big number, especially when the total e-commerce market is $500B. But keep in mind, total retail sales are $3.5 trillion - so e-commerce, while sizable, is only 14% of the retail market.
With our Everywhere Commerce offering, we are helping that $3 trillion - those brick-and-mortar retailers - embrace the new mobile/digital/e-commerce world and continue to thrive. Retailers who I've seen having recent success are combining their physical location and digital capabilities to create an amazing, seamless experience for their customers, giving them a competitive advantage.
We follow the more mature email space closely, and love it when we can compare results. For a typical retailer, a good view rate on an email is 20%. Of those views, a good clickthrough rate is 2.5%. That means that when you send an email to 1 million people, 200,000 people view it, but only 5,000 people interact with it.
When our customers send an SMS, generally 99% of their customers view those messages, and a typical clickthrough rate is 10%. That means that a retailer with an audience of 1 million can expect 999,000 views on every message they send - and 99,000 people will click on it!
That info is great, but do we really care if a customer views or clicks on a piece of marketing communication? Ultimately, we want to drive the most business value for our customers, and views and clicks can be proxy metrics ... but they aren't excellent indicators.
As we pushed for this business value, it became clear to us that more in-depth metrics would be key to giving our clients a better understanding of - and way to optimize - their mobile campaigns. This led to a Proof of Concept of e-commerce tag tracking, a pilot where several of our customers would track ROI on every message they sent, and the Tag Tracking part of our Everywhere Commerce launch!
I'm excited to see this new tool that our customers can use to more quickly see results of their campaigns, act on those results, and use that information to optimize their future campaigns. As we continue to leverage data to make our customers' campaigns more effective, our next step is to automate! In the coming months, we're looking into how customer behavior that is influenced by mobile campaigns can automatically trigger new customer touch-points. Eventually, our customers will set up triggered messages when someone abandons a cart, makes a purchase, or takes any meaningful action, to make the consumer experience better and increase mobile ROI for brands.
Our goal is to enable our customers to use their competitive advantages including existing customer relationships, their locations, and their brands, to evolve and grow and not react to the new digital/e-commerce centric reality, but embrace it!
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