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Offline influence on online purchases


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#1 cre8pc

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Posted 31 October 2005 - 11:25 AM

Study shows offline marketing influences online shopping decisions.

What Drives Purchase Decisions?

Generally, word of mouth, newspaper inserts and TV/Broadcast are more influential than online, internet or email advertising. Reading an article on the product and newspaper inserts also having a strong influence on the online advertising when it comes to purchasing electronics.


Do you find this to be true for you personally, as a shopper? Have you noticed any offline marketing efforts that have paid off for your online sales?

#2 Respree

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Posted 31 October 2005 - 01:48 PM

Generally, word of mouth, newspaper inserts and TV/Broadcast are more influential than online, internet or email advertising. Reading an article on the product and newspaper inserts also having a strong influence on the online advertising when it comes to purchasing electronics.


Personally, as a consumer, I'd agree with that statement. I think every surfer developes an immunity, to some degree, toward ads. If you're watching TV, you get hit by 2 commercials every 15 minutes or so - same with radio.

On the Net, if you were to spend 8 hours a day on it (like I do), there are thousands that will come your way. I think with this kind of bombardment, people train their eyes (again to some degree) not to look at them - its just 'too' much.

I don't think I would go as far as to say that online advertising is 'ineffective' -- quite the contrary. Google just posted the Q3 earnings, which was up seven-fold over the same period last year. There appears to be plenty of opportunity for both advertisers and those who sell advertising.

#3 James

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Posted 31 October 2005 - 05:25 PM

Hi Kim,

Yes, I agree that many of the products I take an interest in tend to have been seen through advertising other than via the Internet. More often than not, they are seen in magazines or on TV. I think that the reason for this is exactly as Garrick suggest, we tend to filter out much of what we see as advertising on the Internet. However, when doing something rarer, such as reading a magazine that I've subscribed to for many years, the things we see make more of an impact.

Interesting though, having used print advertising, I found this particularly ineffective (in fact a waste of money), so that leads me to believe it's very much dependent on the product.

#4 cre8pc

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Posted 31 October 2005 - 05:34 PM

I find the whole thing fascinating. Traditional advertising is not dead yet. Here at my house, even flyers that come in the mail for stores factor into decisions. We often look for URLS in them, or check to see if the online store has a better deal that the B & M store down the street.

Catalogs that come in the mail also send me online, even if that wasn't their intent. I get ideas from their print version and I like the convenience of shopping online. I still look at print advertising more than Internet ads.

#5 James

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Posted 01 November 2005 - 04:00 AM

I agree Kim. Print advertising has stickiness. It sits on your desk reminding you that it's there. You can flick through it as you sit and watch a TV programme, enjoy the garden, or sit on the train. All those times when you're relaxing, it's great to get away from the PC and read something without the need for a pixels or a cathode ray tube! I can have a magazine on my desk for days, constantly reminding me to open up, and look inside. It can sit on my bookcase for referring to later. I love the Internet, and yet I love receiving my monthly magazine subscriptions or the weekly 'rag'.

However, if an advert doesn't have a URL that I can visit and find more information about a product or service, I rarely pick up the phone, visit the store or engage in business with the product or service provider.

#6 DJKay

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Posted 11 November 2005 - 06:16 PM

Hi There Kim,

Great to meet you at Jill's thing in down by Philly. Saw your post here, thought I would jump in.

I use, and have used a combination of online and offline techniques to drive sales, generate leads, etc. Whether its B to C, or B to B, its important to think about the steps, i.e. the process of conversion.

I work in B to B right now. We have a very complex sale with long sales cycles 3 to 18 months. Big ticket sales and services $15K to $250K.

Handsdown, I use SEO/SEM for prospect aquisition [lead gen]--it is the most inexpensive [cost per lead ranges from $15.00 to $35.00] depending upon various factors.

Once they become a lead, they get our prospect email newsletter. After they have set up a demo with a sales exec, we send them a nice, custom cut thank you note, with the rep's card. [Customized Direct Mail Piece] Then a few weeks go by, and we use our in house surveying tool to send them a survey asking them about their demo, if they need any information. After they have received a price quotation, then they are sent a full fledged, hard copy media kit [direct mail piece].

I think you are getting my drift here, but you could have a similar process for b to c or c to c here as well, you just need to have an excellent database with a good Recency Frequency Monetary /Life time value analysis program (RFM/LTV) and integrate the execution various vehicles, offline and online to specific customer segments that offer the most potential upside at the lowest promotion cost.

Hope I am making sense. Best,

DJKay

#7 bwelford

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Posted 11 November 2005 - 06:59 PM

I think you're making an excellent and most important point, DJKay.

It all relates to the Sales Funnel that is often talked about. With long sales cycles, I think it also relates to the AIDA process. That stands for Awareness > Interest > Desire > Action, for those who have not heard of this before. You can combine the two as follows:

Posted Image

In words, that means you should get lots of potential prospects in the top of the funnel and only a small percentage come out of the bottom as confirmed sales. How do you move prospects down the funnel?

There are a lot of prospects at the top of the funnel, so you use cheap methods there. The Internet is great for that.

As prospects get warmer, then you can use more costly methods. You can even involve human contact when you get far enough down the funnel. However that's pretty expensive.

I've given more details on this view of the process here.

#8 montux

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Posted 14 November 2005 - 12:27 AM

cant you place online help program???

#9 DJKay

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Posted 14 November 2005 - 10:01 AM

Hi,

Yes you are correct, bwelford, and there are have been several variations on the funnel theme for conversion over the years.

Customer acquisition is the conversion of a prospect to a customer. Customer retention is focused on selling more stuff to your current customers. This is where recency frequency monetary, or in my case, latency monetary analysis comes in. The in customer retention marketing is that you only spend money where it gives you the most bang for your buck.

Depending upon your business model and industry, once your model is developed you can look at various things and use the data to simulate and bench mark potential customer acquisition strategies.

My all time favorite guru on this stuff is Jim Novo, http://www.jimnovo.com/jim.htm, he has a great ebook that even math & numbers challenged people will get easily.

Best Regards,

DJKay

#10 expat

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Posted 20 November 2005 - 11:35 AM

One big factor in the value of print and other offline advertising is probably whether you sell nationally or locally. It would probably work OK for local, but the costs of getting national coverage would be high and make it a poorly cost-effective, I suspect.

#11 SoonerGirl

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Posted 20 November 2005 - 12:57 PM

Personally, as a shopper (which was question #1) I appreciate print/traditional advertising more than online marketing.  The reason is that via most traditional methods, you've got to reach out and touch me, so to speak.  You have to invest money in me to get me to the sale.  I appreciate that, because that lets me know that you think I'm important enough to reach out and touch.  I was just thinking about this very thing this morning when reading the morning paper (Yes, I'm one of a dying breed that actually likes my morning paper and a cup o' java) - I saw sale flyers from everyone but Wal-Mart (as is the norm) and I found myself thinking, "That's very arrogant of them to think that they don't have to spend money to advertise with flyers in the Sunday paper."

Flip side....online marketing is so polluted with spammers, email harvesters, ad nauseaum that I don't even take the time to differentiate between the honest to good companies trying to be smart and lower advertising expenses and the get rich quickers out there...I just delete it all.  If I didn't sign up for it somewhere before, I must certainly not want it (subconsciously.)

However, as a business owner (question 2) I've often found that to get new customers (especially locally) traditional methods work.  Once they're a current customer, online methods work well and clients are usually thankful for the convenience of my online marketing/advertising efforts.

SG

#12 Fuzzlepop

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Posted 20 November 2005 - 12:59 PM

I read reviews and thats how I choose stuff. I just look for cheapest of what I want then look for reviews.

#13 cre8pc

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Posted 22 November 2005 - 01:11 PM

DJKay wrote:

Great to meet you at Jill's thing in down by Philly. Saw your post here, thought I would jump in

.

Wasn't that fun? High Rankings threw a great little seminar. Getting to meet people in person and hear someone say "I'm so and so from your forums" is fantastic, although of us, Bill will be the one to remember faces and names. I'm a mess.

:)

Anyway, I'm really familiar with the B to B setup, because Verticalnet, whom I used to work for, was all about B to B. It takes a different way of thinking about things.

Can you tell how well your sales lead form converts, or the prospect newsletter? I'm always curious because in usability testing, those areas are some of the places where abandonment issues creep in. I've seen some weird mistakes, like a sales lead form that REQUIRED a FAX number. That blew me away.

Another is how a form asks for personal info. Some sales lead forms ask for gobs of personal information, when all the prospect wants to make some initial contact to learn more before taking the next step.

Have you adjusted your processes based on any feedback and seen improvements or no change at all?



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