On online shopping and the art of persuasion

On Monday, Kevin Hillstrom, the president of Mine That Data and a regular speaker at the ECMOD conference, wrote a blog about multichannel attribution. (You can read it here.) He described how he had decided to buy a new TV from Crutchfield, a US-based retailer of consumer electronics products. In just one month, Hillstrom received a catalogue, abandoned basket notification, free gift offer, a lower price, and an email featuring the selected TV, alongside a free shipping offer. He asked readers to deconstruct that information and explain which marketing activity caused the order, bearing in mind that he had already made up his mind to buy from Crutchfield.

Now, I don’t want to wade into the argument. In fact, what interests me most about this experience is just how hard Crutchfield worked to get the sale. With more than a hint of disappointment I can safely say no retailer has ever courted me like that. The closest I have come is a “Thank you for your interest” email from John Lewis and a couple of “we miss you” emails every now and then. As for abandoned-basket emails, the last one I saw was one my boss forwarded me from hair and beauty care brand Aveda.

To show the contrast between Crutchfield’s tenacious approach to get Kevin to buy the TV, and the more laid-back sales tactics I am accustomed to, here’s my recent experience shopping for shoes. I was looking to buy a pair of Converse Ox trainers and started out using Google’s shopping search.  My buying decision was based on price: Who could give me the best deal on Converse Ox trainers. After trying the usual shoe suspects, I ended up on eBay’s fashion outlet. I clicked “watch” on a pair of trainers so that I could save my choice and continue browsing.  You’re probably expecting me to say that a pair of trainers followed me around the internet as I continued searching. However, because a lot of my browsing was done on a smartphone I didn’t see any of the now ubiquitous retargeting ads.

A couple of days later I noticed the price of my watched item had been reduced by 15 percent, and still had free delivery. Was that intentional or a coincidence? Could the seller, knowing he had only four pairs in that size in stock, used the tactic to tempt the “watchers” he had? Or was it that with only four pairs in stock, he wanted to shift them faster? Or, was it always the plan to reduce the items a certain number of days before the “buy it now” auction ended? Whatever the reason, I took the bait and bought the shoes.
Now get this—six days after I bought the shoes I received an email from eBay: “Miri Thomas, recommended just for you”. Remember, eBay knows I bought the shoes. So why on earth did it send me a selection of Converse trainers? As Kevin Hillstrom would say, “Oh boy…”

Faring slightly better in trying to woo me was Dell. But only slightly. In March, we bought a new PC. In June, we received a mailing from Dell with 10 percent off related accessories—a nice touch. However, if we were in the market for accessories we would have bought them in the first couple of months of buying the computer—and we did. We got a new printer and a new mouse in April from another online retailer. Dell missed the boat.

Crutchfield wanted the sale and it worked for it. The eBay merchant was on the ball, but the online marketplace got its emails wrong. And as for Dell, I give it top marks for the idea, but it was let down by poor timing.

For the marketer, Crutchfield’s sales technique is, as Hillstrom puts it, an “attribution nightmare”. But as a consumer, Crutchfield’s approach is seductive. Hands up: who among you would rather receive an email showing you the shoes you could have bought, or the PC accessories you already have over a free gift to go with the shiny new TV you have put in your basket but haven’t purchased yet?

Thought so.--MT

Emails we love--VAT promotions

Unless you’ve been living in a cave, it can’t have escaped you that the rate of VAT has gone up from 17.5 to 20 percent. Always ready to take advantage of a marketing opportunity, retailers flooded email inboxes with offers to beat the hike. Here are some of the memorable ones we came across:

Glasses Direct
Subject line: “Beat The VAT - All Prices Held + 20% Off Frames For 1 Week!”
Why we love it: The attention-grabbing headline (above) entices customers to open the email whereupon they are greeted by an attractive graphic containing all the necessary details. We also liked that those unsure about taking up the deal were further coaxed by friendly copy: “We are chuffed to bits to be able to tell you that we will not be increasing our prices this year due to the increased VAT. In fact it’s even sweeter than that, as until 11th January we’ll be cushioning the blow of increased VAT even further by also offering you an extra 20% off frames!” There’s no doubt left in the consumer’s mind as to what the offer is and how he can take advantage of it.


White Stuff
Subject line: “Spring sneak peak & more sale items”
Why we love it: This email from White Stuff sees us digress. The VAT rise is clearly not the focus of the email, though it does get a mention in a comic book-style speech bubble: “We are not putting our prices up!” Primarily, we love it for its fun and vibrant superhero theme, and most of all, the “New Adventures of Superdog” comic strip.

Dell
Subject line: “Let Dell pay the VAT increase for you! Click here”
Why we love it: Yes, we know, the “Click here” in the subject line is redundant. So much better to say “Click to open and let Dell pay the VAT for you” or even just “Let Dell pay the VAT for you”. Aside from that, the idea is clever, it may only be a rise of 2.5 percent, but it’s better Dell pay it than us. Makes us feel like we’re sticking it to the man.--MT

Introducing the Catalogue Log

What percentage of catalogues would you say promoted some sort of sale or discount on their covers? If you guessed slightly more than one-third, you’re correct. Of the 520 consumer and business catalogues logged by Catalogue e-business during the first five months of the year, 191 of them—36.7 percent—touted price cuts loud and clear. A subset of these limited their discounts to first-time customers (for instance, promotional products merchant 4imprint).

Not surprisingly, sales and discounts were the most popular promotions offered by mailers—but not the only ones. Fifty-eight of the catalogues, or 11.2 percent, promised some sort of free delivery. Sometimes this was a blanket offer, though just as frequently it was tied to a spending threshold or restricted to online orders (or in the case of crafts merchant Baker Ross’s summer catalogue, both).

Nearly as popular among the catalogues tracked was a free gift with purchase; 57 catalogues, or 11 percent, offered this. Comparatively few (2.1 percent) had a prize draw of some sort, and even fewer (1.3 percent) tried a buy-one-get-one-free promotion.

And some cataloguers figured that if one promotion was good, two (or more) would be even better. Cotton Traders, for instance, frequently promoted a price cut on a particular product (such as £19.99 sweats for just £9.99 in its summer catalogue) as well as a prize draw for £25,000. Another apparel catalogue, Kaleidoscope, promoted on its April cover discounts of up to 20 percent, plus a free cutlery set for those placing their first order. A premier customer edition of office supplies cataloguer Neat Ideas promised savings of up to 60 percent plus buy-one-get-one-free on certain items plus free gifts with purchase. And computer company Dell consistently promised discounts and free P&P.

Contrary to our expectations, January was not the month with the most price promotions. (See chart above; click on image to enlarge.) Although 35.4 percent of the catalogues logged in January advertised price cuts and discounts, in May that rose to 42.6 percent. Perhaps merchants had cut back their inventories prior to Christmas and therefore had less to liquidate, though that wouldn’t explain the increase in price reductions in May. Meanwhile, the percentage of catalogues offering free P&P peaked in April, at a full 20 percent, compared with just 7.3 percent in February and 9 percent in March.

As you can imagine, there are a number of ways to slice and dice the copious data we've collected. That's why we'll be analysing on a monthly basis, beginning with the June catalogues, the offers that make their way through our mail slot. We're calling it the Catalogue e-business Catalogue Log, for lack of anything catchier. But I suspect that the trends the data will reveal will be catchy enough.--SC

Thanks, but no thanks

We like to think we know a good deal when we see one, and so does Dell, it seems. Instead of offering customers a saving of £50 or £50 off their next order, as you can see from the recent mailing received at Catablogue e-business’s headquarters, Dell was fighting the crunch and beefing up the customer’s shopping basket by advertising “UP TO £50 ON YOUR FIRST PURCHASE”. —MT