A foolproof recipe for estimating value and calculating the ROI of a marketing technology solution
The ‘State of Fashion 2018’ recently published by McKinsey & Company in collaboration with the Business of Fashion (BoF) is a must-read for everyone in the fashion industry. Clocking in at over 80 pages long, it is a deep analysis of the business based on over 200 interviews with senior industry executives plus benchmarking analysis of over 500 retailers around the globe.
Customer acquisition has long been an engine of growth for e-commerce retail, especially with the expansion of low-cost digital marketing channels like affiliates and product listing ads. In the early days of e-commerce, it was a land grab — acquire as many customers as possible, for as cheap as possible. But we’ve reached a tipping point as e-commerce approaches maturity. Many brands have seen their cost per acquisition (CPA) going up as retailers saturate digital channels to reach new audiences. At the same time, the return on every new customer acquired is going down — as customers, more price-sensitive than ever, are lured away to low-cost competitors. The way for brands to break the cycle and drive sustainable long-term growth is to focus on acquiring higher-value customers.
The world of acquisition marketing today is one of highly fragmented channels and tools. Different channels rely on different types of technology and point solutions to optimize around their own metrics — which often differ depending on the role that the channel plays in the path in the conversion. Adding to the confusion, channels frequently don’t communicate with one another — making it difficult to assemble a complete view of the customer.
You may be familiar with the terms first and third party data. But you might just smile and nod when somebody starts going on about second party data. Or you may wonder which type of data can deliver the greatest ROI. Then this blog post is for you! In this post, I will break down the three types of data, explain what they mean, and help you understand the value to be gained by each data type.
The entire retail industry can relate to Mark Twain’s reply after reading his own obituary in a newspaper, “The reports of my death are greatly exaggerated”. Forrester’s Online Retail Forecast, 2017 to 2022 has just been released and the results are surprisingly positive.
What has the press missed amid a slew of store closing and bankruptcy announcements this year? Retail is actually growing steadily and is in the midst of a massive transformation. And many of the store closings are a result of brands finally making the tough decisions to right size. Let’s face it, the retail industry has looked at store openings as a way to drive growth for years, but now we’re faced with an overabundance of underperforming assets. Recent research from commercial real estate firm Costar makes this clear: