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As many as 85% of retailers are employing e-Commerce video to increase customer engagement, time spent per page, conversion rates, average order value and retention. Video also is improving SEO rankings, as at least 66% of consumers now view e-Commerce videos regularly during the purchase cycle. This E-book provides 10 steps to implementing a successful video marketing strategy.
Citation preview
The Retailer’s Video Playbook: Video Moves Shoppers To Buy
White Paper
Sponsored by
2
Just as smartphones replaced traditional cell phones, e-Commerce videos are replacing static web photos and text as the next e-Retailing standard. In fact, 85% of merchants already are employing video to engage online customers, according to research from the e-tailing group. As consumer demand for e-Commerce video grows, the question for most retailers is not whether to incorporate videos, but how to achieve the best results from video throughout their enterprises from this continuously developing strategy.
Consumers research exhaustively before
buying products online and want swift
access to facts and demonstrations that
increase understanding and buying
confidence. E-Commerce videos satisfy
this need while increasing consumer
engagement, time spent per page,
conversion rates, average order values
(AOVs), and retention.
Video program results can be verified
quickly. As videos are viewed, analytics
of shopper behavior reveal devices used,
length of engagement, points at which the
viewer rewinds or re-watches, and when
viewers add to cart and purchase.
The color, motion, sound, and lure of
e-Commerce videos give products life
and definition and have a greater impact
on key retail metrics than static images.
Retailers launching or expanding their
e-Commerce video programs can use the
market data, case study results, and the
10-step implementation process
provided in this white paper to
substantiate, streamline, and optimize
retail video strategies.
“Video drives engagement and education,
which is very important given today’s
information-hungry, hard-to-captivate
online shopper, who is constantly seeking
differentiated, engaging ways to digest
content,” stated Craig Nankervis, VP
and CRM Analyst for First Analysis, a
private growth equity research and
investment firm. “Video is singular in its
ability to deliver a fun and informative
buying experience. This dynamic is
generating increased demand for video
across e-Commerce. We are seeing
this strategy’s positive impact on SEO
rankings and conversion rates, as well as
implementations at various stages
of the sales funnel, and its use in
post-purchase scenarios, such as
video newsletters and new customer
on-boarding.”
“Video drives engagement and
education, which is very important given today’s
information-hungry, hard-to-captivate online shopper.”
-Craig Nankervis, First Analysis
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Video Statistics Summary
3
The demand for video is growing: as
many as 66% of consumers now view
e-Commerce videos regularly during the
purchasing process, 90% watch videos at
least once in a while, and 74% will view a
video more than once when researching
information-intensive products, such as
computers, TVs, and power tools, reported
Lauren Freedman, President of the
e-tailing group.
As consumers continue to embrace
e-Commerce videos, Freedman says:
“We will see a greater understanding
of consumer behavior and subsequent
merchant sophistication in terms of where
and how to deploy e-Commerce videos
and what types deliver from an ROI point
of view.”
This white paper will guide both pure-play
e-Commerce and omnichannel retailers
in their efforts to win more sales with
e-Commerce video campaigns that move
shoppers to buy — and assist them after
the sale.
The 10 Steps to Implementing A Successful Video Marketing Strategy
1. Understand What Video Means For Your Business
Consumers have grown accustomed to
viewing online videos (Netflix, YouTube,
Amazon). In June 2013 alone, comScore
reported that 183 million Americans
watched more than 44 billion online
content videos and the number of video
ad views surpassed 20 billion. According
to Cisco, global online video traffic will
represent 55% of all consumer Internet
traffic in 2016, and by 2017, “it would take
an individual over 5 million years to watch
the amount of video that will cross global IP
networks each month.”
Video has hit the mainstream. Consumers
now expect and demand product videos
across the online buying landscape, and
retailers who want to stay relevant must
respond, noted Freedman. “By the end of
this year, there will be significantly more
discussion around not just the benefits of
deploying video, but the opportunity cost
of not doing so.”
74% will view a video more than once when researching information-intensive products
66% of consumers now view e-Commerce videos regularly during the purchasing process
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“By the end of this year, there will
be significantly more discussion around not
just the benefits of deploying video, but the opportunity cost
of not doing so.”
-Lauren Freedman, the e-tailing group
In June 2013,
183 millionAmericans watched more than
44 billion
online videos.
–comScore
90% watch videos at least once in a while
–the e-tailing group
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Retail businesses must start creating and
delivering powerful e-Commerce video
programs that engage and educate
customers at key points in the purchase
cycle. Advanced solution platforms can
display and manage customized content
while providing critical insights into the
business results they achieve. More than
half (51.9%) of marketers said video was
the content strategy with the best ROI,
according to eMarketer.com.
“But don’t just jump in,” advised Craig Wax,
CEO of Invodo. “Carefully consider your
business objectives, audience, message,
response goals, and more. Also determine
whether production, content management,
and other program elements should
be handled in-house, or by experts
experienced in getting the most from
video programs.”
Leading national retailers espouse the benefits of a successful, measurable video marketing strategy:
� The Step2 Company found that shoppers who viewed product videos were 174% more likely to purchase than viewers who did not. “Video lets us connect with [consumers] in an authentic way, whether they’re on our site, on a retailer’s site, or in a retail store,” said Tena Crock, Online Marketing Director for Step2.
� At Samsonite, online video viewers are six times more likely to purchase than nonviewers. “The addition of product videos has helped improve the user experience,” said Alison Katz, Senior E-Commerce Manager at Samsonite, “and increased our sales conversion rate.”
� As L’Occitane site visitors watch product videos, “they’re actually adding more to their carts,” reported Evan Silverberg, Manager of Digital Products for L’Occitane. In addition, they are “spending more time on product pages, and their ATV (average transaction value) tends to be a little higher.” Real-time analytics “allow us to understand the behaviors our online customers are taking when they land on a product page.”
� Communicating the Dickies brand message of no-nonsense quality, utility, and great consumer value — along with workwear features and attributes — “isn’t easy with just photography and two-dimensional images,” stated Robert Dietrich, Digital Marketing Manager for Dickies. “Bringing these [aspects] to life to help consumers understand the value of our products and quality has been really important.”
� For Brown Jordan, portraying the function and form of quality patio furniture is difficult with text and images alone. “We think we have the greatest brand in our industry [but needed] to do a better job of telling our story,” revealed Stephen F. Elton, Chief Brand Officer for the luxury outdoor furniture company. Brown Jordan embraced e-Commerce video to better convey the company and product line to consumers. “That’s really the end goal for us — to tell our story to as many people as possible.”
� At Bizchair.com, 33% of online sales came from the 13% of site visitors who viewed product videos. In addition, video viewers purchased at almost three times the rate of nonviewers, and their AOV was 17.5% higher. After measuring the impact of video, BizChair obtained “the proof of ROI that we need,” stated Sean Belnick, CEO of BizChair.com.
Retailers Corroborate Video Marketing Success
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2. Build The Business Case For C-Level Buy-In
To build buy-in, the company’s video
evangelists must identify key stakeholders
across the C-suite, do their homework, and
be armed with information tailored to each
function. This should include market data as
well as the measurable results reported by
leading (and competitive) retailers already
boosting ROI with e-Commerce video.
These benefits could include increased site
traffic, customer engagement, time spent
per page, SEO rankings, conversion rates,
AOV, and much more — combined with
reduced product return rates.
Buy-in is more likely when C-level
executives understand how video
marketing can enhance the customer
experience across channels and allow a
better understanding of the features and
benefits that drive shoppers to buy.
Lenovo is doing just that: in addition to
improving the customer experience, data
from the brand’s e-Commerce video
platform “provides a window into how
consumers make purchase decisions,”
said Lewis Broadnax, Executive Director
of Web Sales and Marketing for Lenovo.
“This confirms the effectiveness of video as
a sales tool.”
E-Commerce video “clearly has value —
both to our customers who can acquire
the information they seek to guide them to
purchase, and to Clarks for its significant
return on investment,” stated Rick Almeida,
Director of E-Commerce at Clarks America.
How Consumers Shop With Video
In addition to improving the customer experience, data from the brand’s e-Commerce video platform “provides a window into how consumers make purchase decisions,” said Lewis Broadnax, Executive Director of Web Sales and Marketing for Lenovo.
E-Commerce video “clearly has
value — to our customers who can acquire the
information they seek to guide them to purchase.”
-Rick Almeida Clarks America
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3. Identify Video Program Components
The elements of a video program include
choices of partners, technology platforms,
and merchandising capabilities.
First, consider whether your current
e-Commerce platform is equipped and
ready to handle video. Other questions to
ask include:
X What are the destination channels,
devices, and formats?
X How will content be hosted and
streamed across the site?
X How will the video player be
implemented?
X How can we analyze the results of
the videos?
X How flexible is the content
management system (CMS)?
X Will all product videos reside in a
central location that can be managed
remotely?
An effective video program that drives
results is professional, purposeful, and
scalable. The strategy requires “a very
specialized sort of experience,” stated
Robert Dietrich, Digital Marketing Manager
for the Dickies brand. “Video production
requires time, energy, oversight, and
involvement.” That kind of bandwidth “is
the perennial issue with any company,”
said Dietrich, who chose a third-party
e-Commerce video provider to supply
that bandwidth. The selected vendor
provided everything “from soup to nuts,”
including “a clear plan of action in the way
we produced, got everything arranged —
through to postproduction — and finalized
a product we’re all happy with.”
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Video Expands Consumer ConfidenceA recent study from the e-tailing group titled, How Consumers Shop With Video — And How To Sell To Them, surveyed more than 1,000 shoppers about e-Commerce video consumption. Findings revealed that among consumers who engage with online product videos:
� 57% are more confident when watching a video in advance of making a purchase online, and therefore are less likely to return that product;
� 52% are willing to stay on a site longer because product videos are available;
� 45% are more likely to return to a retailer who integrates video into the website experience;
� 44% purchase more products on websites that provide educational videos;
� 41% are more likely to share video (versus photos or written text) found on a product page; and
� 40% purchase products on websites as a result of being influenced by videos.
“Video production
requires time, energy, oversight, and involvement.”
-Robert Dietrich, Dickies
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4. Pinpoint The Metrics To Measure
Based on your business goals and video
program needs, select measurable metrics
that can validate that program objectives
are being achieved. Most retailers focus
on sales and conversions, but many other
factors can be measured — including viewer
attention span, engagement, customer
satisfaction, interaction, and the exact point
during the video a purchase is triggered.
Everything to be measured must be
properly tagged, and then run as a pilot to
be sure the selected metrics are
being quantified.
The e-Commerce video platform under
way at FootSmart will measure “time spent
viewing the video as well as conversion
and the feedback associated with that,”
reported Lauren Schuman, Director of
Online Merchandising and Content for
the footwear company. “We also plan to
do some A/B testing, such as video versus
no video on a product detail page. The
overall results we seek include increased
conversions, reduced product return rates,
a better shopping experience, and greater
productivity for the company.”
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“The overall results we seek include increased conversions,
reduced product return rates, a better shopping experience, and greater
productivity for the company.”
-Lauren Schuman, FootSmart
The e-Commerce video platform under way at FootSmart will measure “time spent viewing the video as well as conversion and the feedback associated with that,” reported Lauren Schuman, Director of Online Merchandising and Content.
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5. Define Video Type And Style Will the video program address a category
or specific product? Will complex products
require demonstrations? Is lifestyle the
primary selling point? These and many
other elements influence the type of
video to pilot. Type then determines style:
video tone, background, setting, audio,
environment, location, talent, and other
content creation features. All must parallel
and complement video program business
goals and brand positioning.
“At Invodo, we invest time up front to really
understand the retailer’s brand positioning
and mission for the program, then produce
a customized Style Guide that steers a
consistent look and feel,” said Wax. “Each
Style Guide includes recommended best
practices, based on the many e-Commerce
videos we’ve created and implemented.”
6. Select The Product(s) To Highlight
Retailers new to e-Commerce video
should begin by choosing key product
categories, then selecting a handful
of products within those categories to
enliven with online video. A combination
of complex, high-value, demonstrable, and
high-margin products is best for initial
video implementation. Select enough
products within each segment to get quick,
statistically valid results during a pilot.
But even though the initial video launch
might be small, be sure the program is
capable of scaling up to maximize the
investment: can videos for other products,
and eventually the entire catalog, be
integrated with the program technology?
In time, can product subsets also be
covered by video and included on product
pages to increase cross-sell and upsell
potential? Videos will be able to address
new marketing opportunities in the future,
so be sure your platform can scale up
to accommodate additional videos and
leverage the full power of e-Commerce
video technologies.
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“We invest time up front to
really understand the retailer’s brand positioning
and mission for the program, then produce a customized
Style Guide that steers a consistent look and feel.”
-Craig Wax, Invodo
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7. Establish A Budget For Video Creation And Marketing
To create a budget for video, start with a
basic business plan including ROI analysis.
Determine the volume of video that can
be driven incrementally within that budget,
with a focus on specific goals. As pilots
move to full implementation, the ROI
realized may allow for additional spend.
Some retailers seek to minimize the cost
of video by producing their own product
videos, which can be a successful route,
especially when staff has time available.
However, experts trained in retail-specific
video strategies, content, platforms, and
production help retailers avoid potential
pitfalls and improve results. According to
comScore, professionally produced video
optimized for e-Commerce outperforms
user-generated content (UGC) video by
30%, delivering a 24.7% lift, as compared
with an 18.7% lift for the UGC video.
In addition, some e-Commerce video
partners can produce and deploy content
within just a few business days.
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Professionally produced video
outperforms user-generated
content (UGC) by
30%-comScore
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8. Format Video For Multiple Screens
Videos delivered to a smartphone or in-store display have different technical specifications than those projected on a desktop monitor or widescreen Internet-connected television. Differences also exist among videos delivered via email, Facebook, and web sites.
Video will attract a broader spectrum of viewers when it is formatted for multiple screens. During setup, address all formats, aspect ratios, and orientations while producing the main product page video, when little additional work is required to satisfy multiscreen needs. With that setup in place, you can run a single production session to create an e-Commerce video for all screens: web site, in-store, social, and mobile.
This multiuse session reduces overall costs, thereby increasing the return on production (ROP). ROP can be achieved by reducing costs and creating efficiencies throughout the video production process.
All videos must be encoded with targeted viewing destinations. Sophisticated video platforms will detect the user device — Android, iOS, tablet, laptop, or desktop — then automatically trigger the corresponding technical controls.
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Return on Production (ROP) of e-Commerce
videos can be achieved by reducing costs and creating efficiencies
throughout the video production process.
Video Augments Mobile OutreachWhen shopping via mobile, where video content is easier and more inviting to consume than tedious text, consumers are three times more likely to click and view product videos than desktop or laptop users, reported Forbes. Accordingly, e-Commerce video consumption can triple as mobile usage and access speeds expand.
The mobile marketplace is expanding at an impressive rate. Smartphone shipments will grow worldwide to 1.16 billion in 2016, noted IDC, while tablet shipments are expected to reach 416 million
in 2017, reported The NPD Group, up from 121 million in 2012. By 2015, as much as 66% of Internet traffic will come from mobile devices, according to PriceWaterhouseCoopers. In fact, by 2017, the number of mobile Internet device and application connections combined will exceed the world’s population, as mobile data traffic increases 13-fold over the next four years, Cisco indicated. Retailers can leverage and parallel this growth with e-Commerce video programs that target this burgeoning mobile user market.
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9. Test And Optimize The Video Program
Confirm that the selected video platform
enables experimental testing for true
evaluation of video impact. Run an A/B test
to measure sales impact or other results
with or without a video, using voice-overs
versus presenters, how-to versus features/
benefits, and other options. In addition
to measuring for increased unit sales, a
platform that allows cross-sell and upsell
within the video also allows you to measure
AOV increases. This shoppable video
feature — which allows customers to browse
and buy related products without ever
leaving the video — is key to improving AOV.
Where improved engagement is the goal,
analyze how long consumers spent viewing
and rewinding videos, what grabbed their
interest, at what point they purchased, and
where they backed out. Experimentation
offers retailers valuable opportunities to
modify and streamline video programs for
improved ROI.
Video testing at Golfsmith revealed SEO
benefits as well as a 64% increase in
conversion rates for products with video,
which drove an additional $564,000 in
annualized sales for the SKUs tested.
Videos, then extended to other online
golfing products, delivered “proven ROI
by driving higher conversion rates while
engaging and informing our customers,”
said Jamey Maki, VP of North American
E-Commerce for Golfsmith. “A 64%
conversion rate increase across product
categories speaks for itself.” In addition, the
solution employed was the only one that
delivered the “custom video content we
needed, as well as the player, API, hosting
and streaming.”
Allowing shoppers to rate and review
online videos, as well as ask product
questions, also helps retailers analyze
and optimize programs for increased ROI.
Encouraging consumers to rate, comment,
and interact with product videos further
increases engagement. This closed-loop,
virtuous cycle of test, experiment, analyze,
and enhance offers continual optimization.
Run an A/B test to measure sales impact or other results with or without a video, using
voice-overs versus presenters, how-to versus
features/benefits, and other options.
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Video testing at Golfsmith revealed SEO benefits as well as a 64% increase in conversion rates for products with video, which drove an additional $564,000 in annualized sales for the SKUs tested.
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10. Make Video A Cross-Channel Endeavor
When e-Commerce videos are leveraged
across channels — including mobile,
social, in-store and email — the strategy
investment boosts ROI, further intensifying
bottom-line results. In fact, cross-channel
video strategies are “becoming the
norm,” said Freedman. “Consumers want
product video available on-demand on
computers, tablets, smartphones, and
Internet-connected televisions. They aren’t
concerned with form factors, devices, or
operating systems — as the ‘HTML5 versus
Flash’ debate demonstrated — they just
want to access product videos whenever
and wherever they choose. Retailers must
satisfy this demand by leveraging new
platforms and tools that allow better and
faster content delivery across channels,
as well as the consistency needed for
omnichannel consumers.”
In-store QR codes featured on displays
and product packaging allow smartphone-
enabled shoppers to access e-Commerce
brand videos instantly. Linking to mobile
video is the most popular use for mobile
action codes: according to mobile action
code survey results reported by
MediaPost, 40% of codes scanned
took users to some kind of video content,
including product demos.
Step2 is among the retailers leveraging
e-Commerce video investment through QR
codes in stores that sell its products. The
company deployed posters with QR codes
throughout Toys “R” Us stores, providing
real-time access via smartphone to videos
showing Step2 products in action.
“Gaining an advantage in this evolving
world of multichannel selling requires
retailers to become more service-oriented,
putting information in consumers’
hands whenever and wherever they’re
motivated to research and buy,” said
Wax. “Compelling product videos made
available across channels help service-
minded retailers to this information, and
in turn, build loyalty and create stronger
product differentiation.”
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“Consumers want product video
available on-demand on computers, tablets,
smartphones and Internet-connected
televisions.”
-Lauren Freedman the e-tailing group
QR Codes Offer Real-Time Access To Product VideosStep2 deployed posters with QR codes throughout Toys “R” Us stores, providing real-time access via smartphone to videos showing Step2 products in action. Item # 736693
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13
The 11th Step: Start Today At the aggressive rate e-Commerce video
is growing, retailers must stay relevant with
quality video marketing of their product
catalogs. In fact, bringing products to life
on product pages is “just the tip of the
sword,” stated Wax. “E-Commerce video
will be making its way through the entire
customer journey, from browsing to after-
sale support and beyond. Other industries
also are integrating video. For example,
in the service sector, video’s appeal and
ability to engage and educate are reducing
expensive call-center volume.”
At First Analysis, Nankervis confirms the
potential of e-Commerce video: “We are
starting to see video being used in broader
consumer contexts, including follow-up on
upsell and cross-sell strategies. We think
videos will become increasingly intelligent,
such as allowing viewers to interact with
video content by clicking ‘tell me more,’ as
well as transact and communicate in real
time with a brand.”
E-commerce video is “an exciting and
rapidly changing market,” Freedman
observed. “Ultimately the only sure thing
is this: when we revisit this market in 2014,
we’ll all be amazed by the progress made
over the course of one short year.”
“E-Commerce video will be making
its way through the entire customer journey, from browsing to after-sale support and beyond.
Other industries also are integrating video.”
-Craig Wax, Invodo
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About InvodoInvodo educates and influences consumers by creating and delivering the
world’s most powerful content. Invodo’s video programs combine strategy,
production, and technology to drive shoppers to purchase. Invodo
video content improves conversion rates, reduces returns, and increases
consumer engagement. The Invodo video platform manages production
workflow, delivers video SEO, and collects integrated analytics to drive
ongoing optimization of video strategy. For more information, please visit
www.invodo.com.
About Retail TouchPointsRetail TouchPoints is an online publishing network for retail executives,
with content focused on optimizing the customer experience across
all channels. The Retail TouchPoints network is comprised of a weekly
newsletter, insightful editorial blog, special reports, web seminars,
exclusive benchmark research, and a content-rich web site featuring daily
news updates and multimedia interviews at www.retailtouchpoints.com.
The Retail TouchPoints team also interacts with social media communities
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