Paid keyword placements enhance call center sales for a mattress retailer

Published on 06-Feb-2012

"Coremetrics gives us the ability to analyze the full multichannel impact of our online marketing initiatives. We learned that payper- click keywords drove 20 percent of our web-influenced call center sales. Coremetrics multichannel data is immediately actionable and will drive optimization of our marketing strategy going forward." - Vice President of eCommerce of a leading mattress company

Customer:
Mattress Retailer

Industry:
Retail

Deployment country:
United States

Solution:
EMM - Digital Marketing Optimization, Smarter Commerce, Smarter Marketing

Overview

A leading bedding retailer in the US operates about 385 company-owned stores nationwide and sells its beds through another 150 partner stores, most of which are in Canada. The air-bed maker also sells through a company-operated call center, its own website, and on the QVC shopping channel.

Business need:
A leading bed retailer in the US wanted to know the true allocation of sales originating from their website compared to sales from their customer service call center.

Solution:
The company deployed a dynamic, toll-free number system for their web environment that displayed different toll-free numbers based on the keyword responsible for driving the site visit.

Benefits:
§Tie keyword search to specific marketing programs §Evaluate effectiveness of each marketing program §Receive keyword-level, single-view reporting for online sales, offline sales and marketing cost data

Case Study

A mattress retailer learns how keyword placement affects call center sales

Twenty percent of web-influenced call center sales come from paid keyword placements

The challenge

A mattress retailer began a strategic program to purchase paid search listings for all major search engines. The retailer initially measured the effectiveness of these keywords based purely on the level of website sales generated. However, the company soon realized that online-only measurement failed to capture the full impact of this marketing investment. Given the high consideration nature of their product, they suspected that many people were leaving the site and contacting the call center to complete a transaction. Therefore, they wanted to measure the full multichannel impact of keyword buys and optimize those placements for maximum effectiveness.

The solution

The retailer deployed a dynamic toll-free number system for their web environment. Their website pages displayed different toll-free numbers depending on the keyword responsible for driving the site visit. Using a unique toll-free number for each keyword enabled the retailer to tie call center activity to specific marketing programs.

The retailer then worked with IBM® Coremetrics® retail analysts to develop a unique multichannel report that combined online sales, offline sales and marketing cost data at a keyword level into a single view. In addition to breaking out online clickthroughs, orders, visits and sales for each individual keyword, the report also lists the number of calls and inquiries generated in the call center by each keyword group. All relevant data is seamlessly imported nightly into the IBM Coremetrics LIVE Profile platform, and the report auto-generates each day with zero manual intervention.

With cost data listed for each keyword purchase, the report enabled the retailer to perform detailed online, offline and multichannel return on marketing investment (ROMI) analysis. Now, using a single report, the retailer can quickly locate all critical information at the click of a button for any date range in question.

Results of the study

Leveraging the analytical skills of their Coremetrics retail analyst, the retailer discovered several significant insights:
● Keyword buys generated a good return based on web sales, but when the full multichannel impact of those keywords was incorporated, it increased the original return 2.5 times (web sales plus phone sales that are tied to keywords).
● Web-influenced call center sales represented 18 percent more revenue than pure web transactions.
● Twenty percent of web-influenced call center sales came from keyword activity.
● Average order value for web-influenced call center transactions was 39.8 percent higher than pure web orders due to effective cross-sell training in the call center.
● More than half of the total sales driven by each of the three engines came through the call center.

Because of these insights, the retailer reduced spending on poorly performing keywords, increased investment in high performing search terms and presented the overall impact and value of keyword-specific online marketing to executive management.
Solution components
Software
● IBM® Digital Analytics
Services
● IBM Coremetrics retail analysts

For more information
To learn more about IBM Coremetrics solutions please contact your IBM representative or IBM Business Partner, or visit the following website: ibm.com/software/marketing-solutions

Products and services used

IBM products and services that were used in this case study.

Software:
IBM Digital Analytics

Legal Information

© Copyright IBM Corporation 2011 IBM Corporation Software Group Route 100 Somers, NY 10589 U.S.A. Produced in the United States of America December 2011 IBM, the IBM logo, ibm.com, and Coremetrics are trademarks of International Business Machines Corporation in the United States, other countries or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with a trademark symbol (® or ™), these symbols indicate US registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the web at “Copyright and trademark information” at ibm.com/legal/copytrade.shtml Other product, company or service names may be trademarks or service marks of others.