The Value of Online Marketing for Brick and Mortar Stores

A lot gets made of conversion rates and justifiably so, when using online marketing tactics. Of course shopping comparison engines and marketplaces fall into this category, because in some way a merchant has paid to get those products up whether they are clicked on or not.

A recent article based on a Harris Interactive Poll revealed that 66% or 2/3 of holiday shoppers first look and research for products online. This reveals a major shift in consumers buying habits since the explosion in online shopping and shows that even the deepest analytics currently available do not show the full story.

This is best illustrated by my own experience just last night. I recently was given a new digital camera, which I now have to find the memory card for. After researching the type of card I need (of course Olympus needs a special version), I found the item I needed on Amazon.com for $16.95. Initially that looked nice, until I noticed the $8.95 shipping and handling charge.

As a former merchant, I know about recouping some costs in the shipping and handling charges (a la BlueDial using dropshippers), so I understand the need to make back the money. Instead of paying the full price however, I did a quick search for the item on a comparison engine at some brick and mortar retailers, and found the same item for $24.95 at Target. Using a little math, the total price is very similar:

16.95+8.95 = $25.90 -vs.- $24.95

So my decision? Rather than order from a retailer I was not familiar with, I would rather stop by Target during my leisure, pick up the card that I know I can quickly return if needed, and travel on.

So, did I buy online? No.

Does Target know this was an online generated purchase? No.

Did Target’s online marekting make this happen? YES.

November 7th, 2007