Rugs Direct increases sales by 30% using first-click analytics
RugsDirect.com boosted sales by 30% after implementing Coremetrics` technology that tracks multiple customer interactions to determine which marketing tactic first put a consumer on the path to making a purchase.
Prior to using Coremetrics, Rugs Direct attributed online sales based on the last marketing tactic that influenced the buyer. For example, a customer might have visited a web site by clicking on a paid ad, then visited a second time after clicking on a banner ad, and finally purchased following a click on a link in an e-mail. Under the last-click approach, the sale would be attributed solely to the e-mail campaign.
Coremetrics’ flexible attribution management platform enables marketers to view transactions in the context of multiple customer interactions over time, giving a comprehensive picture that allows them to allocate digital marketing investments appropriately, the company says.
“We were spending a lot on high-visibility keywords in our vertical—rugs and area rugs,” says Randy Kremer, president of Rugs Direct. “The return on ad spend was not great on those keywords when you attribute that to last click. But when we changed that to first click and said ‘how are people really finding out about us, starting their discovery or shopping experience with rugs,’ it’s those keywords. That’s where we have to put the emphasis.”
Sales have increased each month since Rugs Direct implemented first-click attribution using Coremetrics, Kremer says.
“We switched to first click in July and from there our sales increased dramatically, upwards of 30% in one month compared to the previous year’s month,” he says.
Rugs Direct was able to identify that 35% of its branded keyword sales were originally influenced by other keywords. The retailer also discovered that 11% of sales were not being accurately reported as having been impacted by paid search. In many cases, a consumer would discover the Rugs Direct site after clicking on a paid search ad in the course of comparison shopping. Shortly after, the consumer would make a purchase after clicking on an affiliate ad, which resulted in the affiliate taking credit for the sale.
“We had to figure out where to best spend our marketing dollars, and certainly first click is what we needed to do that,” Kremer says.
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