eTail West 2018

February 26 - March 01, 2018

JW Marriott, Palm Springs, CA

1.888.482.6012

Why Top Retailers Are Adopting Performance Marketing

Why Top Retailers Are Adopting Performance MarketingWhy Top Retailers Are Adopting Performance Marketing
This report benchmarks the digital retail industry including the adoption and management of performance marketing programs such as partner marketing alongside other marketing tactics. The fundamental principle of performance marketing is that all activities should be tracked, measured, recorded and rewarded based on their performance—such as a click-through or conversion. The results analyzed in this report were gathered from survey responses over the summer of 2016 from a large range of executives representing leading retail brands.

Key topics include:
  • Acquisition and Retention Strategy Across Channels
  • ROI & Measurement
  • Spend Across Marketing Channels

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Executive Summary


It’s no surprise that cutthroat competition has increased pressure for retailers to drive both customer acquisition and retention. At the same time, complex customer journeys challenge brands to integrate their marketing activities across more touchpoints, channels, devices, and marketing partners as well as measure the return on investment of those efforts. As retail marketers scale their efforts, digital marketing must evolve to better serve their needs and accommodate both online and offline ecosystems.

This report benchmarks the digital retail industry including the adoption and management of performance marketing programs such as partner marketing alongside other marketing tactics. Areas covered in the report include the marketing mix, ROI & measurement, marketing spend, data, and business impact. The results analyzed in this report were gathered from survey responses over the summer of 2016 from a large range of executives representing leading retail brands.

The fundamental principle of performance marketing is that all activities should be tracked, measured, recorded and rewarded based on their performance—such as a click-through or conversion. Partner marketing is a performance-based marketing channel that has origins in affiliate marketing, but has evolved beyond to include a wider array of nontraditional partners such as aggregators, content partners, comparison shopping engines, mobile apps, and social media in addition to traditional affiliates.

Key findings include an increase in performance-based partner marketing to drive both customer acquisition and retention, a trend towards the application of these methodologies to other increasingly popular channels such as mobile, and a growing need for data and insights around transparency, fraud, contribution, and attribution to support business decision-making. Increasingly, partner marketing has risen in popularity due to its substantial return on investment, which essentially provides brands an opportunity to further focus budgets on revenue-generating activities they can easily measure.

Executive Summary


Retail brands are constantly refining their commercial capabilities and marketing capabilities. 2016 has been no different, as retailers are shifting their marketing budgets and technology investments to build better strategies to connect with consumers across their increasingly non-linear paths to purchase. The goal is simple: to create a seamless, enjoyable shopping experience across the spectrum of digital and offline commercial channels.

Brands are pulling in revenue from more commercial channels than ever before, but there are still great opportunities to reinforce the connecting fibers between those channels. It is no longer sufficient to simply have a presence in these various channels. Rather, every channel must feel like an extension of the others, and critical capabilities like attribution analytics and cross-promotions must cover that entire spectrum.

Retail marketing is evolving right alongside omnichannel commerce; audience reach is expanding as the number of commercial channels grows, and campaigns are becoming more effective at engaging and converting. The digital age has brought consumers and brands closer than ever before, a fact that brands are embracing through campaigns that encourage direct interaction. Consumers are no longer an audience to be advertised to; they are participants to build relationships with. Today’s best campaigns are content-centered, highly personalized, and deeply measurable.

eTail’s sixth annual e-commerce outlook will assess some of the trends and technologies driving retail innovation. This paper evaluates the marketing tactics retailers are leveraging, and takes a look at how those tactics have impacted core KPIs. It will also take a close look at innovative initiatives like referral marketing and user-generated content. Finally, it will gauge how well retailers are keeping up with omnichannel commerce.