Electronic Retailer - July 2011 - 33

To see Osborn’s idea of an optimized website for an “as seen on TV” product, look at www.buyirongym.com or www.pillowpets.com.

Working the Analytics
Is there really a single best way to sell a DRTV product online? The question is moot for vendors with a more complex array of products to sell. Multi-channel retailer Ulta Beauty, for example, stocks more than 12,000 cosmetic and beauty care items. Its e-commerce site, www.ulta.com, caters not to TV viewers who saw a particular commercial but to a wide range of shoppers with different agendas. It is in situations like these that analytics and testing really come into their own, suggests Justis. With Omniture’s help, he says, Ulta Beauty recently looked at its home page and made some discoveries about what optimization technologies can do. As is often the case before retailers begin to “leverage their data,” in Justis’ phrase, promotions showcased on Ulta Beauty’s site were determined by a “sort of editorial calendar,” or by different business units competing for prime real estate on the home page. “They finally said, ‘Wait a minute, this has to be about what customers want to see, not just what we want to show them,’ ” he says. Thanks to analytics software, Ulta Beauty had data on individuals who visited the site and what they purchased during their previous visits, Justis says. “So they said, ‘Why are we showing them a generic promotion on the home page? Why not let an algorithm say, I recognize this person. Let’s show her something relevant to what she bought before. If the last three times she came she bought Bare Minerals products, let’s show her a Bare Minerals product.’ ” In other words, different visitors to Ulta Beauty’s site now find different promotions on the home page. That and other data-driven improvements have raised revenue-per-visitor by 12 percent, Justis says. But suppose a shopper is visiting Ulta Beauty’s site for the first time? “Well, what if we could bring in some third-party data about you from other sources?” asks Justis. This is a current hot topic in the world of online marketing optimization, he says: “We partner with organizations that can tell us, for instance, ‘People from this zip code have a preference for these types of products.’ So if I see you’re from Orange County, California, I can highlight products that people from Orange County are likely to buy. And then I can test to see if that outperforms generic showcased products on my home page.”

to your website, likely viewers of a banner ad you place on another site, or people likely to type particular keywords into search engines. But the latest question that Vantage’s clients are asking about their customers from an optimization perspective, Wiebe says, is this: What can we find out about a customer’s lifetime value to us, based on when, where and how the person first became a customer? Take insurance, for example. Of all of the site visitors who inquire about auto insurance, which ones buy a policy? Which ones later add a second vehicle to the policy? Which ones add homeowner’s insurance? Which ones renew? Now, who are our most profitable customers, over time, and what do we know about them? What kinds of people are they? Where are they from? How did they navigate through our website? What types of media or which of our marketing efforts brought them to us in the first place? If reliable, statistically significant answers can be found to those questions, then that’s the data that will shape many optimization efforts in the future, Wiebe says. Information about those high-value customers will drive everything from site design to the choice of paid-search terms to bid on. The implications are plain: If competitors are running their online marketing operations with data like that and you are still flipping a coin to decide which product to feature on the home page next month, you could be in trouble.

Lifetime Value?
Incorporating third-party data about site visitors and target customers into analytics and testing programs is, indeed, a hot trend, agrees Darren Wiebe, chief marketing officer of Vantage Media of El Segundo, Calif., an online marketing agency specializing in the education, insurance and moving industries. “In online marketing today, more and more data is becoming available about the people you want to reach,” Wiebe says. This applies whether those people are first-time visitors
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July 2011 | electronicRETAILER

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Electronic Retailer - July 2011

Table of Contents for the Digital Edition of Electronic Retailer - July 2011

Electronic Retailer - July 2011
Table of Contents
Calendar of Events
Your Association, Your Bottom Line
Industry Reports
FTC Forum
eMarketer Research
IMS Retail Rankings
Jordan Whitney’s Top Categories
Lockard & Wechsler’s Clearance & Price Index
Say Yes! Yes! To no!no!
Beauty Trends to Embrace – and Those to Avoid
Let the Data Do the Driving
Take the Right Route
Choose Your Team Wisely to Avoid Partners in Crime
Radio
Legal
Fulfillment
DRTV
Member Spotlight
Advertiser Spotlight
Bulletin Board
Advertiser Index
Classifieds
Rick Petry
Electronic Retailer - July 2011 - Electronic Retailer - July 2011
Electronic Retailer - July 2011 - Cover2
Electronic Retailer - July 2011 - 3
Electronic Retailer - July 2011 - Table of Contents
Electronic Retailer - July 2011 - 5
Electronic Retailer - July 2011 - 6
Electronic Retailer - July 2011 - Calendar of Events
Electronic Retailer - July 2011 - Your Association, Your Bottom Line
Electronic Retailer - July 2011 - Industry Reports
Electronic Retailer - July 2011 - 10
Electronic Retailer - July 2011 - 11
Electronic Retailer - July 2011 - FTC Forum
Electronic Retailer - July 2011 - 13
Electronic Retailer - July 2011 - eMarketer Research
Electronic Retailer - July 2011 - 15
Electronic Retailer - July 2011 - IMS Retail Rankings
Electronic Retailer - July 2011 - 17
Electronic Retailer - July 2011 - Jordan Whitney’s Top Categories
Electronic Retailer - July 2011 - 19
Electronic Retailer - July 2011 - Lockard & Wechsler’s Clearance & Price Index
Electronic Retailer - July 2011 - 21
Electronic Retailer - July 2011 - Say Yes! Yes! To no!no!
Electronic Retailer - July 2011 - 23
Electronic Retailer - July 2011 - 24
Electronic Retailer - July 2011 - 25
Electronic Retailer - July 2011 - 26
Electronic Retailer - July 2011 - 27
Electronic Retailer - July 2011 - Beauty Trends to Embrace – and Those to Avoid
Electronic Retailer - July 2011 - 29
Electronic Retailer - July 2011 - Let the Data Do the Driving
Electronic Retailer - July 2011 - 31
Electronic Retailer - July 2011 - 32
Electronic Retailer - July 2011 - 33
Electronic Retailer - July 2011 - Take the Right Route
Electronic Retailer - July 2011 - 35
Electronic Retailer - July 2011 - Choose Your Team Wisely to Avoid Partners in Crime
Electronic Retailer - July 2011 - 37
Electronic Retailer - July 2011 - Radio
Electronic Retailer - July 2011 - 39
Electronic Retailer - July 2011 - Legal
Electronic Retailer - July 2011 - 41
Electronic Retailer - July 2011 - 42
Electronic Retailer - July 2011 - Fulfillment
Electronic Retailer - July 2011 - 44
Electronic Retailer - July 2011 - DRTV
Electronic Retailer - July 2011 - 46
Electronic Retailer - July 2011 - 47
Electronic Retailer - July 2011 - Member Spotlight
Electronic Retailer - July 2011 - 49
Electronic Retailer - July 2011 - Advertiser Spotlight
Electronic Retailer - July 2011 - Advertiser Index
Electronic Retailer - July 2011 - Classifieds
Electronic Retailer - July 2011 - 53
Electronic Retailer - July 2011 - Rick Petry
Electronic Retailer - July 2011 - Cover3
Electronic Retailer - July 2011 - Cover4
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