TECHNOLOGY
2012: the year e-commerce walked through my front door
Daniel Lizio-Katzen, COO, GramercyOne A
s someone who’s been lucky enough to work in the tech- nology industry during the advent of e-commerce and online marketing, experienc-
ing the acceleration of online-to-offl ine commerce over the last two years has been truly eye-opening. Put in plain English, online-to-offl ine
means that bricks and mortar businesses, such as spas, can start to utilise metrics like customer acquisition cost (CAC) and return on investment (ROI) that online-only busi- nesses have taken for granted for years. This is due to the fact that online mar-
keting tools like AdWords and Google Analytics, which used to be the sole domain of sophisticated digital marketing organi- sations like Amazon and Expedia, are now being used by businesses of all sizes. When you add marketing channels like Twitter,
The latest software systems enable you to track the impact of your marketing spend in detail and calculate the lifetime value of individual customers, says Daniel Lizio-Katzen
Facebook and Groupon to the mix, it means smart bricks and mortar businesses can compete on a more equal playing fi eld. Traditionally, these businesses relied on
advertising, promotions and word of mouth to drive new customers through the door. However, as advertising channels started to migrate online in the form of email, ban- ner and pay-per-click advertising, tracking the success of these campaigns to the bot- tom line became more diffi cult. Some larger businesses were able to cope with these added channels by hiring
more marketing people to monitor them, however, for smaller businesses and those without dedicated marketing teams, keep- ing up became increasingly diffi cult.
The challenge
If we use a good sized day spa as an exam- ple – one with 12 rooms, fi ve manicure/ pedicure stations and a relaxation room. In a typical urban area, a well-run spa of this size, with 50-70 per cent average monthly room utilisation, would have a dedicated, or at least part-time, marketing employee. If this employee is up to scratch, they’ll
If you’re able to optimise your marketing, so every dollar you spend drives a positive return, you can start to operate in a new way – decisions can be made based on maximising utilisation and capacity, rather than minimising marketing costs
have a Google AdWords campaign running to target new customers, be doing regular email marketing to existing customers, have a Facebook page showcasing their brand and maybe have a Twitter account where the latest promotions are posted. However, if our example spa is any-
thing like thousands of others around the world, when customers walk through the door, they’re unlikely to know how they got there, because they still can’t track which marketing channel brought them in.
106 spa business handbook 2012
www.spahandbook.com
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