Trends & New Data on Local Digital Marketing from The Local Merchant Report 2015

Key Findings | Top Trends | Pain Points | Pitch Strategies
David Card, Research Director,
Street Fight Insights
Stephanie Miles, Senior
Editor, Street Fight
Michael Taylor, Business
Development, Thrive Analytics

Welcome
 Third edition of Local Merchant Report
 Presentation, conversation, Q&A
 Use “Ask a Question” button
 Hashtag is #localmerchant
 Webinar will be archived for later viewing
 Full report: http://streetfightmag.com/localmerchant2015
 Special discount for attendees at end of webinar
http://streetfightmag.com/localmerchant2015
#localmerchant

Today’s agenda
Key findings from Street Fight’s Local Merchant Report
2015
 Local merchants’ marketing tactics and objectives
 How suppliers can help address needs and pain
points
 Effective pitching to close more deals faster
 What’s coming next
 Q&A
#localmerchant

Today’s panelists
Laura Rich, co-founder and CEO, Street Fight
David Card, research director, Street Fight Insights
Stephanie Miles, senior editor, Street Fight
Michael Taylor, Business Development, Thrive Analytics
#localmerchant

Survey partnership
 Street Fight partnered with Thrive Analytics
 Thrive Analytics surveyed 553 U.S. Small and Medium Sized
Businesses from its Connected Experience Panel™
 The Survey was fielded from 5/30/2014 through 6/13/2014
 Survey results represent businesses from all categories and all
sizes
#localmerchant

AboutThrive Analytics
• We are a leading digital marketing research and
customer engagement advisory firm.
• Domestic (U.S.) and International Capabilities
• Leading Edge Tools, Technologies & Processes
 Customer Prioritization Models- Connected
Experience Model™
 Customer Experience- 360° Connected
Experience™
 Loyalty Execution Guide
 Consumer Research/SMB Research/Online Panel
 Advisory Services
 Digital Transformation Playbooks
#localmerchant

ATipping Point In Mobile Device Usage.
Device most commonly used when looking for
local information online (i.e., shopping,
restaurants, local services)
42%
9%
49%
49%
11%
40%
Smartphone
Tablet
Desktop PC or laptop
2015 2014
Source: Thrive Analytics, “Local Search Report” 2014
& 2015.
60% of
consumers use
mobile devices
when searching
for local
information
online.
#localmerchant

Online Has Become a Persistent State.
When you look for local information on your
mobile device, where do you tend to be?
48%
9%
15%
28%
40%
8%
17%
35%
At home At work In the car Out and about
2014 2015
+13%
+25%
24/7 Access-
Consumers are no
longer tied to PCs.
Source: Thrive Analytics, “Local Search Report” 2014 & 2015. Some numbers may not
total 100% due to rounding.
#localmerchant

In-store Usage Influences Purchase
Decisions.
18%
35% 34%
13%
22%
38%
30%
10%
Every time Often Sometimes Never
2014 2015
How often do you use your smartphone
while shopping in malls, grocery or retail
stores*?
Source: Thrive Analytics, “Local Search Report” 2014 & 2015.
+11%
+9%
54% look for deals in
store.
51% compare prices in
store.
39% look at reviews in
store.
#localmerchant

The Influence of Mobile on Local Merchants
 Mobile has become the local discovery “default”
 Social and mobile are now tied together
 Increases in mobile websites, payments,
and mobile shopping investments
 Call and location analytics usage will see
a lift
 Mobile connections with sales people and
media companies
#localmerchant


Marketing Tactics and Objectives
#localmerchant

Local merchants’ use of media types in marketing
20%
22%
23%
24%
24%
26%
27%
31%
32%
51%
57%
0% 10% 20% 30% 40% 50% 60%
Daily Deals
Mobile Advertising
Geotargeting
Text Messaging
Booking/Scheduling Platforms
Coupons
Loyalty Programs
Yellow Pages
Local Newspapers
Email Marketing
Online Advertising
Share of respondents
Digital tops traditional marketing, but mobile is not yet widely adopted
#localmerchant

Audience poll:
Which marketing medium do local merchants rate as
most effective? (Choose one)
 Print advertising (newspapers and Yellow Pages)
 Online advertising (including search and social)
 Mobile
 Daily deals
 Coupons
#localmerchant

Local merchants’ most effective marketing media
19%
22%
24%
25%
27%
28%
28%
29%
31%
47%
55%
0% 10% 20% 30% 40% 50% 60%
Geotargeting
Text Messaging
Mobile Advertising
Yellow Pages
Daily Deals
Local Newspapers
Booking/Scheduling Platforms
Loyalty Programs
Coupons
Email Marketing
Online Advertising
Share of respondents rating 4,5
Digital tactics far outpace print in perceived effectiveness
#localmerchant

Marketing objectives by business type
73%
55%
40%
57%
9%
13%
0%
8%
19%
32%
60%
35%
0%
20%
40%
60%
80%
100%
Local Retail Personal
Services
Restaurant Service
Provider
Acquire New Customers Build Brand Awareness
Retain Current Customers
Marketing suppliers should adjust focus by industry objectives
#localmerchant

Case Study: Mobile coupons keep customers loyal
Merchant: MAKS Boutique
Industry: Local Retail
Location: Orange County, California
Platforms: Facebook, Firefly
Rewards, Instagram, MoneyMailer
• Primary objective: Increasing visit frequency
• Uses loyalty program to collect customer contact data
• Regularly sends coupons to at-risk customers
• Believes “older mom” demographic responds more to email marketing than
social media
#localmerchant

Expectations for social media in marketing
7%
20%
25%
36%
37%
39%
42%
0% 10% 20% 30% 40% 50%
It allows me to work better with…
It will reduce my marketing costs
It adds credibility to my business
It will engage my customers
I have no expectations
It will build brand awareness for…
It will generate leads for my…
Share of respondents using social media
Social aimed at leads, awareness, and engagement, but many seem confused
#localmerchant

Case Study: Using social to generate leads
Merchant: Campo
Industry: Restaurant
Location: Reno, Nevada
Platforms: Facebook, Instagram,
Offerpop, OpenTable, Twitter
• Primary objectives: Boosting customer engagement, retention, and
acquisition
• Works with an agency to direct social strategy, but generates content in-
house
• Spends 7 hours per week managing online marketing
• Uses social media contests to fuel email marketing campaigns


Addressing Needs and Pain Points
#localmerchant

Biggest challenges with digital marketing
21%
33%
33%
42%
0% 10% 20% 30% 40% 50%
Not enough resources to hire
dedicated personnel
Ad budget not large enough
Not enough knowledge or expertise
Not enough time
Digital marketing complexity can become a time sink for busy managers
#localmerchant

Audience poll:
Where do local merchants need the most marketing
help? (Choose one)
 Print advertising (newspapers and Yellow Pages)
 Online display ads
 Mobile
 Search
 Social media marketing
 E-commerce
#localmerchant

Where local merchants need the most help
9%
10%
10%
11%
13%
15%
16%
17%
18%
24%
24%
25%
0% 5% 10% 15% 20% 25% 30% 35%
Loyalty marketing
Reputation monitoring and…
Deals/promotions/coupons
Online display/banner advertising
Mobile marketing
Blogging/online content creation
Paid search advertising
Traditional media
Getting our listings information…
Facebook and/or social media…
Company website, Ecommerce
Search engine optimization
With no single, dominant need, marketing suppliers must offer integration solutions
#localmerchant

Biggest issues with social media
2%
9%
9%
38%
51%
0% 10% 20% 30% 40% 50% 60%
It has hurt my image in the past.
It is too complicated to understand.
Poor reviews are there for everyone
to see.
I have not seen any return on the
money I have spent.
It is too time consuming to manage.
A significant number of SMBs haven’t seen ROI from social media marketing
#localmerchant

Case Study: Measuring ROI with dashboards
Merchant: Oddyssea
Industry: Local Retail
Location: Half Moon Bay, California
Platforms: Swarm, Vend
• Primary objectives: Measure ROI of online and offline campaigns
• Merchant more comfortable with technology than average business owner
• Uses beacons to determine how many customers enter his business
• Integrated systems allow merchant to monitor conversions using real-time
sales data
#localmerchant

Dashboards used by business type
58% 59%
78%
57%
31% 24%
11%
22%
10% 17% 11% 21%
0%
20%
40%
60%
80%
100%
Local Retail Personal
Services
Restaurant Service
Provider
Social media platform General marketing platform
Booking/Scheduling platform
Share of respondents using dashboards
Retailers most sophisticated in use of general marketing platforms
#localmerchant


How Suppliers Should Pitch
#localmerchant

Number of sales rep contacts per week
57%
24%
7% 7% 5%
0%
10%
20%
30%
40%
50%
60%
One to two Three to five Six to seven Eight to ten Ten or more
Inundated with pitches? Nearly half getting 3+ calls per week

Audience poll:
Which is the most effective way of pitching to local
merchants? (Choose one)
 In person
 E-mail
 Snail mail
 Phone
#localmerchant

How local merchants prefer to be contacted
9%
13%
15%
63%
0% 10% 20% 30% 40% 50% 60% 70%
By Phone
In Person
By Mail
Email
Email with strong, quick messaging is best means of contact
#localmerchant


What’s Next for Local Marketing
#localmerchant

Estimated share of sales via online/mobile
7%
13%
33%
47%47%
15% 15%
23%
0%
20%
40%
60%
None 1% to 10% 11% to 30% Over 31%
Able to accept mobile payments Unable to accept mobile payments
Early mobile payments adopters expect big digital sales payoff
#localmerchant

Mobile is changing the in-store shopping experience
• Helping customers locate products
• Triggering offers based on location
• Empowering sales associates
• Customers creating in-store shopping lists
• Using shopper movements to dictate store layouts

Benefits of a POS system by business type
0%
43% 38%
50%50%
30%
18%
17%25%
5%
10%
20%
25% 22%
35%
13%
0%
20%
40%
60%
80%
100%
Restaurant Service
Provider
Personal
Services
Local Retail
Gathering data on customers Increased repeat traffic
Decreased marketing costs Supports mobile
Share of respondents using POS
Connected local economy will integrate media, marketing, transaction systems
#localmerchant

Selling cloud-based POS systems to SMBs
• Emphasize functionalities that legacy systems can’t
support
• Highlight support features
• Research ongoing costs associated with legacy
systems
• Stress the benefits of data security
• Sell merchants on automation features
#localmerchant

Next Steps
• Put boots on the ground when selling to SMBs
• Perform competitive research
• Think like a consumer
• Consider starting with restaurant owners
#localmerchant

Q&A
 Ask a Question through the Questions button
 Take 25% off the cost of the report! Use code WEBINAR630
through July 6th
www.streetfightmag.com/localmerchant2015
#localmerchant

Thank You!
 Webinar will be archived for later viewing
 Full report: http://streetfightmag.com/localmerchant2015
Early Bird $399
OCT. 20, 2015 | NYC
www.streetfightsummit.com
#localmerchant

Trends & New Data on Local Digital Marketing from The Local Merchant Report 2015

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