How Online Searches & Advertising Drive in-Store Sales?
Google and the Gortz Store in Germany have preformed a study to understand how to quantify the level of Research Online and Purchase Offline (ROPO), and benchmark the incremental in-store sales against the online sales generated. Need Help? Checkout Green Lotus PPC Management Services!
Studies have shown that consumer shopping behavior is evolving, the chart below shows how shop-savvy consumers become when it comes to making purchase decisions!
As you see, a significant proportion of consumers research online before buying offline!
Methodology:
Relevant Search query triggers the Görtz AdWords Ad without reference to the coupon offer, then a discount coupon for €10 is displayed on the landing page in cities with a significant store network, redeemable on- and offline during the campaign, and for one week after the campaign. By racking the coupons redeemed both on- and offline, we can compare the offline revenue generated vs. online conversions.
Research Online, Purchase Offline (ROPO) effect: Redeemed coupons
Significant ROPO effect: For every 100x coupons redeemed through the online shop, a further 51x coupons were redeemed in-store, following online research by the consumer.
Research Online, Purchase Offline (ROPO) effect: Gross sales
The sales revenues derived from consumers who performed ROPO is disproportionately high. For every €1 of sales generated online, another €0.93 of offline revenue is generated.
Conclusions
The results show that consumers research apparel products online before purchasing the product offline in a store.
Within the final phase of the path to purchase, SEM plays a role in influencing the consumer’s decision to buy through a store.
For every 2x customers who buy online via the webshop, there is around 1x additional customer who buys offline through a store where there is a corresponding store network.
The ratio of on- and offline revenues between the webshop and the physical stores is almost 1:1.
Where multi-channel retailers have the requisite store presence, SEM is a powerful vehicle to drive both multi-channel sales, and generate revenues.
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