Common ecommerce mistake

Don’t Make This Common eCommerce Mistake

Last year year, comScore released a report entitled, Trends Shaping Local Search in 2014. The report summarizes both survey and behavioral data regarding the web activity, attitudes and intentions of over 3,000 online local business searchers.

One of the stats that stood out to us was the fairly large proportion of consumers that search for a brand’s nearby location with the intention of making an in-store purchase—but instead end up buying from that company’s eCommerce site. (We refer to this as “the influence of local search on e-commerce”). The study found that significant percentage of consumers performed a search for a local business and then subsequently made their purchase online.

What the comScore data reveals is that marketers cannot neglect local search tactics when developing their e-commerce marketing strategies. Those that do will risk losing eCommerce revenue to their competitors.

Consider the following example: There are two shoe store brands, and each one offers consumers both in-store and eCommerce purchase methods. Brand A has invested in local search and eCommerce marketing tools and programs, while Brand B has focused its marketing investment almost exclusively on eCommerce initiatives.

A consumer with in-store purchase intent performs the following local search: “shoe stores in Denver” Brand A dominates the search results page because its marketing team has optimized the company’s web properties for local search with local landing pages and rich local content. Meanwhile, Brand B has no presence on the search results page.

The consumer clicks through to Brand A’s local landing page for its Denver location and ends up browsing the site and purchasing a pair of shoes on the brand’s website. The revenue then gets attributed to Brand A’s eCommerce channel. By not appearing on the local search results page, Brand B lost e-commerce revenue to its competitor. And as comScore’s data shows, a portion of eCommerce sales result from consumers that originally had intended to go to a local store. Brand B is relinquishing a potentially significant piece of the eCommerce revenue by not investing in local search marketing.

Does your brand have both in-store and eCommerce purchase models? Has your company invested heavily in eCommerce marketing activities at the expense of local search initiatives? As the comScore data and the example above show, such a strategy can be a costly mistake.

No Comments

Post A Comment