Location Based eCommerce Tracking

Satisfying Local In-Store Fulfillment Demands
Building Customer-Centric Portfolios with Local Product Availability
Bringing Pricing and Promotional Offers Together for Hyper-Local Retailing
Localized eCommerce Strategies Support the Omnichannel Path to Purchase
White Paper: Location Based Tracking – Optimizing Performance in an Omnichannel World
Location-Based eCommerce Tracking: How Clavis Helps

Ready or not, here come multichannel shoppers with their high expectations for seamless movement between the digital and physical worlds along their path to purchase. Responding to the demands of these consumers who expect to buy what, when, and how they want definitely has retailers and brands on their toes. With channel-hopping becoming the new normal in retail, how will brands rise up to the challenge of a digitally-driven, multichannel retail experience?  location based ecommerce tracking

Brands recognize they need to adapt to a new omnichannel reality—and quickly—to maintain sales and shopper loyalty.  Satisfying consumer demand for faster and easier fulfillment of their online orders has retailers pushing to identify cost-effective options and reorganize business models to have products ready for delivery or pick up at a local store, all at the customer’s convenience. At the same time, Aberdeen Group research found that 54% of retailers indicate a need to create specific and precise merchandise assortments tailored to customer segments and different channels, and 88% report pricing has become more important.  

For their part, manufacturers absolutely understand the necessity of expanding their capabilities to exceed the expectations of multichannel shoppers by enabling customers to convert on any of the various channels that are part of the shopper journey.  As the number of categories consumers shopped and purchased through ecommerce has multiplied, CPG/FMCG manufacturers have become increasingly aware of the opportunity to not only grow online sales of their products, but also influence brand selection and sales in offline channels.  

Seeing a chance to gain competitive advantage, progressive manufacturers invest time and resources into maximizing the visibility and desirability of their products on the digital shelf.  Yet to best position their brands for success and optimize performance in the omnichannel retail era, progressive manufacturers need to add another essential tool to their category and channel management toolbox: location based ecommerce tracking.  

Satisfying Local In-Store Fulfillment Demands

Whether to save on shipping costs or to get a product as quickly as possible, the number of consumers choosing to “click and collect” an online purchase from their local store is on the rise.  In the UK, for example, 72% of shoppers use click and collect.  Across categories,  50% of consumers say they expect to be able to buy a product online and be able to pick it up in-store.  Meanwhile,  50% of shoppers say if an online retailer did not offer the option to pick up in-store, they would buy from someplace else that did.  Local In-Store Fulfillment

As a result, more and more retailers refer to “click and collect” as a “table stakes” option—a requirement rather than a point of differentiation to operating in an omnichannel environment.  In a survey from the Consumer Goods Forum and KPMG, retailers list click and collect as the most common shopping option they offer (59%).

Click and collect sales have contributed solidly to total retail ecommerce sales.  click and collect purchases, for instance, made up 30% of Sam’s Club’s total retail ecommerce sales, 23% of Kmart’s, and 12% of Best Buy’s.  With predictions that in-store fulfillment of online purchases will continue to drive ecommerce growth, ensuring product availability within a shopper’s market area becomes critically important to brands looking to achieve sales and share objectives.

After all, out of stocks on the local level translate into much more than one lost sale for the brand.  In the U.S. where more consumers are trying online grocery shopping for the first time, if the desired brand is not available, they may conclude online shopping for groceries is not that convenient—making retail partners unhappy.  Out of stocks can also negatively impact online search ranking, decreasing a brand’s visibility on the digital shelf.  Frequent or extended out of stocks also effects brand loyalty, negatively impacting the potential for future purchases.     

By incorporating location-level tracking data into measurement and monitoring platforms, manufacturers can more rapidly identify—and even anticipate—availability issues and take steps to prevent out of stocks at retail partners in key markets for their brands.  If a brand discovers a retailer’s stores in a key market do not have priority SKUs listed online or in-store, the manufacturer can address this issue to improve performance and expand relationships with retail partners.  

Building Customer-Centric Portfolios with Local Product Availability

Not only do multichannel shoppers expect local availability, but they also want products that are relevant to their preferences and demands.  Retailers have always focused store merchandising on the demographics and shopper behaviors within a local market area, and some have become similarly deliberate about their online assortments.

With good reason, too.  The online shopper at a retailer may have a very different profile than the in-store shopper.  They may be less price-sensitive and more interested in certain features or benefits.  An online shopper at Target.com, for instance, may be looking for larger package sizes of pet food to restock, whereas the in-store shopper wants smaller package sizes in different flavors on a weekly basis.  Layering in regional differences among these two groups—such as West Coast online shoppers want pet food with organic ingredients while Mid-Atlantic online shoppers primarily want fish and chicken flavors—may add further variations to the profiles. Local Product Availability

In order to build the optimal customer-centric product assortment shoppers want and omnichannel retailers need, brands must understand which segments of their product assortments drive sales in different geographic locations. With the insights into the priority items by market and by retailer provided by location-level tracking data, brands can better focus efforts on a narrower range of products to improve assortment and visibility on the digital and physical shelf.  An understanding of the range of market needs (and where range out-of-stocks exist) further helps brands perfect market-level portfolio strategies to elevate sales and profitability across all channels.

Bringing Pricing and Promotional Offers Together for Hyper-Local Retailing

Though a multichannel shopper moves back and forth between online and in-store channels, they still expect to get the same information and experience wherever they go.  More than 85% of consumers research a product online—sometimes while they are in a physical store.  A major part of the research includes looking at and comparing prices and current promotional offers on favorite and competitive brands across retailers and their online and offline channels.  In fact, according to an MIT study, 80% of shoppers check prices online prior to purchase.

Variations across online and physical stores in pricing and promotional offers can confuse and disappoint shoppers, creating customer service headaches.  Naturally, retailers want to ensure the best customer experience possible, not to mention boost sales and profits.   Yet 47% of retail companies today report that price transparency is one of their top business challenges, compared to 24% of retailers in 2014.  Pricing and Promo Local Retailing

To alleviate potential shopper frustration, build loyalty, and develop a reputation for offering a fair price, some retailers have moved towards an omnichannel pricing strategy.  For others, the more traditional channel-specific approach to pricing holds firm.  For brands, these variations in pricing and promotional approaches across different retailers, online and physical locations, and regional and local market areas, pose a serious challenge to ensuring full execution of pricing and promotional programs.

When brands integrate local-level tracking data into their monitoring capability, they can much more easily confirm full implementation and address issues that could otherwise depress category and sales performance.  The added ability to proactively help retailers manage compliance across online and physical locations also enhances their ability to drive sales and deliver a more seamless experience for customers.  And in the omnichannel era, it’s the manufacturers that facilitate a retailer’s response to the demands of multichannel shoppers that will see the greatest rewards for their brands.

Location Based eCommerce Tracking Supports the Omnichannel Path to Purchase

The expectations and demands of multi-channel shoppers show no signs of abating and retailers are rushing to meet them with omnichannel solutions.  With one eye on customer needs and the other on profitability, retailers with online and geographically-dispersed physical locations continue to look for ways to manage in-store fulfillment of online orders and coordinate assortment, pricing, and promotional strategy in a way that optimizes performance across all channels.  local click and collect

For brands, the addition of local-level tracking to the category and channel management toolbox not only supports business objectives, but also aligns manufacturers much more closely with retail priorities in an omnichannel environment.  With the ready-access to product availability, as well as insights into assortment and pricing and promotional offerings delivered by local-level tracking information, omnichannel-ready manufacturers will have data-driven knowledge to power stronger, more successful market-level programs and relationships with retailers.  

Location Based eCommerce Tracking: How Clavis Helps

With our location based ecommerce tracking, brands can optimize their online distribution and pricing strategy to suit local market demand. Especially with the advent of on-demand delivery services such as Amazon Prime Now, it is more important than ever that brands have a clear line of sight into their local ecommerce data. location based ecommerce trackingWith our Location Based Tracking, brands can understand localized product availability and price across online retailers, categories, and brands—down to the postal code.  With this knowledge, brands can offer the most productive assortment in each local market and ensure their localized promotion strategy is in compliance with their contracts. In addition to aggregation data of localized tracking at the market, retailer, brand and category levels, manufacturers will also be able to make product-by-product comparisons. 

Find out how you can better understand your local online performance and increase your ecommerce sales at online retailers.