It’s no secret the economy is forcing online retailers to change the tactics they use to acquire and retain customers. But this doesn’t mean they’re cutting back across the board. While they’re cutting spend in some areas, they’re spending more in other areas that bring positive ROI.
This may be why more than 80 percent of the 24 percent of retailers, who indicated in a recent Forrester Research survey conducted for Shop.org that they’ll spend more than originally planned this year, said they planned to increase their search spend.
The results of the survey of 117 online retailers were compiled in Shop.org’s study, The State of Retailing Online 2009.
The study reminded me of a case study I heard about recently involving Cabela’s, the direct marketer and specialty retailer of outdoor sporting goods. The company used a paid search campaign designed to push traffic into retail stores during a Memorial Day sales event last year.
Cabela’s maintains a strong online and catalog presence in addition to a growing number of retail stores across the U.S. “To increase traffic at these brick-and-mortar locations,” says Derek Fortna, Internet marketing manager at Cabela’s, “we decided to promote our offline stores online.”
For the campaign, Cabela’s partner, Performics, built paid search campaigns for each store, focusing on keywords for Cabela’s brand, the Memorial Day event and the combination of both, such as “Cabela’s Holiday Event.”
Geotargeted strategies were used. The company developed ad copy offering in-store coupons. These appeared on search pages of people who were in a 200-mile radius during the holiday event, and could only be redeemed at those locations. Landing pages were also developed to guide consumers through the coupon retrieval process.
The results? Ten percent of all consumers who clicked on the ad retrieved coupons, and 40 percent of the coupons were redeemed at retail locations.
This is one of the best success stories I’ve heard involving geotargeting, retailing and online search, and certainly one worth going to school on.