NEW YORK, May 22, 2018
"While it is obvious that Amazon is redefining the retail industry, there is still tremendous opportunity for retailers to compete," said Ed Keller, CEO, Engagement Labs. "Our research found that several retailers outperform Amazon in offline conversation – which is equally important in driving consumer sales as the conversations happening online. By understanding consumer conversations, and optimizing marketing campaigns based on this data, retailers have the opportunity to increase their marketing ROI and revenue."
According to the study, brand marketers can learn from different retailers across categories to better measure up against the online shopping behemoth.
In the discount stores category, Costco's strong TotalSocial score places it second – after Amazon – with high offline scores for volume (how much the brand is being talked about), sentiment (how positive the conversation is) and influence (how well the brand connects with the everyday influencers). In fact, Costco's offline sentiment and offline volume scores surpass Amazon's. Costco's consistent focus on wholesale prices and quality merchandise is a strategy that resonates with its members in their offline conversations. However, the report found Costco does not perform as well online, revealing an area for improvement for the brand.
Target has a stronger TotalSocial online score than either Walmart or Costco, and it ranks just behind Amazon with a very competitive online sentiment score. Target's success in sparking online conversations is driving e-Commerce sales for the brand.
A retailer's entire year is often determined in the months leading up to the holiday season, and according to Engagement Labs' report, Macy's surpassed Amazon in online sentiment during this period. In addition, Macy's online and offline brand sharing scores–the extent to which people are sharing or talking about a brand's marketing or advertising–are a close second to Amazon's, and the retailer has higher offline and online influence scores than Amazon, indicating that more influential consumers are talking about Macy's than Amazon.
The analysis finds that Kohl's has such strong offline sentiment that it's a close second to Amazon throughout the year, but similarly to Macy's, it surpasses Amazon for offline sentiment during the critical holiday shopping season. Over the last several years, Kohl's has invested in an aggressive omnichannel strategy which motivates brand sharing and both online and offline discussion. For example, mobile now accounts for 67 percent of its online traffic.
The Home Center / Hardware Stores
Lowe's and Home Depot
Lowe's and Home Depot have created experiential marketing campaigns that motivate consumers to talk, leading to strong offline volume and sentiment. Lowe's ranks higher than Amazon in online sentiment, and both retailers rank higher than Amazon in offline influence, largely due to the fact that when consumers look to make home improvements they seek recommendations from the influencers in their everyday lives.
Sephora and Ulta
Beauty products are intensely personal and Sephora and Ulta understand this. They have created experiential marketing to encourage shoppers to visit the stores, try the products, and then purchase.
This approach has motivated consumers to talk about each brand. Sephora has the second highest overall TotalSocial score in the beauty category, behind Amazon. Ulta takes third place. In addition, both brands have higher online sentiment and offline influence scores than Amazon. Ulta also surpasses Amazon in offline sentiment, while Sephora ranks first for offline brand sharing.
"Each conversation metric can impact sales for retail brands," said Ed Keller. "To better compete, retailers should think about 'talkability' when creating their marketing campaigns. By activating consumers to talk positively and share their content offline and online will impact their ability to compete in a rapidly changing retail environment."
The full e-book, "5 Ways to Beat Amazon" is available for download.
To learn more about Engagement Labs and how to increase your brand's word of mouth in real life and online, reach out at: email@example.com.
About Engagement Labs
Engagement Labs (TSXV: EL) (OTCQB: ELBSF) is an industry-leading data and analytics firm that focuses on the entire social ecosystem and its impact on business. The Company's TotalSocial® platform is the only platform that combines powerful online (social media) and offline (word of mouth) data with predictive analytics. Engagement Labs has a proprietary ten-year database of unique brand, industry and competitive intelligence. The Company's cutting-edge predictive analytics uses machine learning and artificial intelligence to reveal the social metrics that increases marketing ROI and top line revenue for its diverse group of clients, consisting of Fortune 500 companies.
TotalSocial® is a premier data and analytics platform that provides brands with unique insights, improved marketing ROI and strategies to grow revenue. Fueled by actionable online and offline data, TotalSocial is the only platform that encompasses and listens to the entire social ecosystem. TotalSocial offers unique, proprietary data about brands, its industry and competitors. With cutting-edge diagnostics, patent-pending predictive analytics and machine learning, TotalSocial identifies business opportunities and provides recommendations and a roadmap to grow revenue and achieve business and marketing goals.
SOURCE Engagement Labs