The grocery landscape in Australia is becoming increasingly competitive. With Aldi now holding an 8.9% market share and IGA not far behind, grocery market leaders Woolworths and Coles need to think outside the box to retain customers.
The worst kept secret in Australian commerce is now official: retail juggernaut Amazon is coming to our shores, bringing some seismic changes to the market along with it.
To give some perspective on how big Amazon actually is, it’s important to understand the sheer scale of its global operation:
The way we buy has most certainly changed. We’ve seen large brick and mortar stores such as Dick Smith move to online only. We’re all waiting in anticipation for Amazon to enter the Australian market this year. In a market where you can now order something online and have it arrive on the same day, the Australian retail industry is focusing more than ever on the end-to-end customer experience.
While online and mobile sales are on the rise - especially for Black Friday and Cyber Monday - a large percentage of retail sales are still transacted in store. However, a true omni-channel strategy shouldn't be about online vs. offline. Instead, to create seamless shipping experiences and capture a true 360 degree view of each customer, retailers should look at how marketing and data management efforts across all channels affect each other and sales overall.
Even with the madness of Black Friday and Cyber Monday behind them, retailers are busier than ever gearing up for a promising holiday season. To help retailers maximize their learnings from the past week, we opened up the Performance Horizon data vault to compare Black Friday activity from 2015 and 2016. While we are using hard data, we are keeping the analysis light.
This past week has been a big one for retail with major transactions erupting on Black Friday, continuing throughout the weekend, and spiking again during Cyber Monday. As a follow up to our Black Friday analysis, we’ve taken a look at the real-time data in our data warehouse and compared conversion activity on both major dates.
Last week, Black Friday drove tremendous partner marketing activity on the Performance Horizon platform. This included almost ten million conversions occurring in 53 unique currencies (from United Arab Emirates Dirham - AED to South African Rand - ZAR) resulting in a total of over $100,000,000 in economic impact for advertisers over the course of a single day. These conversions dwarf our stats from last year, in large part because of the significant volume of traffic from our new clients in 2016.
With Black Friday rearing its head this week and Cyber Monday just around the corner, global retailers are primed and ready for action. Last year, Black Friday drove £1.1 billion online sales in one day and sales this year are estimated to surpass those figures.
It’s no surprise that cutthroat competition has increased pressure for retailers to drive both customer acquisition and retention. At the same time, complex customer journeys challenge brands to integrate their marketing activities across more touchpoints, channels, devices, and marketing partners as well as measure the return on investment of those efforts. As retail marketers scale their efforts, digital marketing must evolve to better serve their needs and accommodate both online and offline ecosystems.
Client Success Story
THE ICONIC is Australia's leading online destination for fashion and sportswear, selling products from over 700 Australian and international brands. Although they managed a large portion of their affiliate channel in-house and had direct relationships with their key marketing partners, THE ICONIC sought a technology partner that provided more sophisticated, in-depth performance data and would enable them to work with all of their partners on a single platform.
The main challenge THE ICONIC faced was transitioning to a technology platform while seamlessly onboarding existing marketing partners. Onboarding any new enterprise software can present challenges, and with thousands of partners to transition in the affiliate channel, seamless execution is critical to avoid wasting money both in lost sales and inefficient use of internal resources.
THE ICONIC's affiliate program was fragmented across multiple networks and lacked in-depth performance data, which hindered long-term channel growth. THE ICONIC needed a solution that allowed them to view all partner performance data on a single dashboard, track individual partner performance in detail, and increase data transparency alongside their partners to improve performance.