Paid search helps Lamps Plus personalize online product pages
A specialty lamps retailer is using predictive analytics to deliver personalized product landing pages to online customers.
Paid search campaigns are a key part of the Lamps Plus marketing strategy, but the company struggled with increasing bounce rates. By extending its partnership with Certona, Lamps Plus is using personalized product landing pages to reduce this attrition and better engage shoppers.
Using data from Google paid search campaigns, the platform enables Lamps Plus to deliver a relevant selection of similar products based on shoppers’ interactions with a product listing advertisement (PLA). As shoppers discover a PLA on Google, clicking that ad brings them to a personalized LampsPlus online landing page that features the product in the PLA, as well as a relevant sort of personalized product recommendations powered by Certona’s predictive algorithm. The curated merchandise is based on results from real-time shopper behavior, paid search keywords and other contextual information, such as device type, referring search engine, location and time of day.
This new strategy has increased product relevance, slashed product listing advertisement bounce rates by 22%, and reduced external traffic bounce rates by 17%s, according to the company.
“Lamps Plus has benefitted from Certona’s expertise with personalization technology and by expanding this program to better support paid traffic sources, we have significantly improved the customer experience,” said Angela Hsu, senior VP of marketing and e-commerce, Lamps Plus. “Our personalization program ensures that customers see an expanded selection of lighting and home furnishing products that match their preferences and needs, which has generated more sales.”
The program is an extension of Lamps Plus’ other personalization efforts, including delivering individualized product recommendations and curated merchandising capabilities via the company’s website and email channels.
Forecast: Consumers’ use of grocery apps to nearly double this year
Grocery apps are among the fastest-growing apps in the United States, and their momentum shows no sign of slowing.
This year, 18.0 million U.S. adults will use a grocery app at least once a month, up 49.6% over last year. This is based on smartphone users who have at least one grocery app on their phone, according to a forecast from eMarketer.
When analyzing the adoption of apps that primarily deliver produce and perishable items, including meal kit services, more than one in five adult smartphone m-commerce buyers will use a grocery app to order food by next year.
“Shoppers are becoming more comfortable with ordering online in general, and grocery is a part of that,” said eMarketer senior analyst Patricia Orsini.
The key hurdles for ordering fresh produce and other perishable items online typically has been delivery time, and the desire to hand-select produce and meat. The good news is more retailers are overcoming these hurdles.
“Retailers have been able to transcend these barriers with click-and-collect models of delivery — order online, pick up in-store. And if the shopper is ordering from their regular grocery store, familiarity helps them trust that the products will be of the quality they expect,” Orsini added. “A bad experience, however, could turn consumers off for good, so retailers need to ensure they provide a good experience from day one.”
According to the report, robust growth for grocery apps is being fueled by the Amazon/Whole Foods merger and Walmart, which is expanding its grocery delivery from six cities to 100 by the end of the year. Yet, the general food and beverage category (which includes non-perishables) is one of the most under-penetrated within the U.S. e-commerce market. At $14.94 billion, food and beverage retail e-commerce sales will represent just 2.8% of all U.S. e-commerce sales this year.
“The percentage of online grocery sales remains small, [but] it is one of the fastest-growing online categories,” Orsini said.
“While no one expects the number of brick-and-mortar grocery stores to seriously decline, the options consumers will have to purchase groceries will increase,” she said. “Retailers recognize this; they are improving their online offerings in order to retain market share.”
H-E-B to open digital tech lab
H-E-B, the Texas grocery powerhouse, made a new move to strengthen its position in the digital retail space.
The supermarket retailer is developing a “world-class” tech facility and innovation lab in East Austin, Texas. The 81,000-sq.-ft. facility, expected to open next spring, will house the company’s growing H-E-B Digital team and Favor, the Austin-based on-demand delivery service that is a wholly-owned subsidiary of the company. (The grocer acquired Favor Delivery in February.)
H-E-B is converting an industrial warehouse into a creative and collaborative workspace for Austin-based employees of the H-E-B Digital team and Favor’s corporate headquarters. Architecture firm, IA Interior Architects, is fully customizing the two-story space.
The lab is also on the hunt for talent that will bolster the digital and Favor teams. The company plans to add several hundred jobs, and is hiring across all areas of expertise, including product management, product design, and software engineering, according to H-E-B.
The new facility coincides with the company’s other strategic moves designed to enhance H-E-B’s digital and delivery offerings. In addition to acquiring Favor Delivery, the grocer also offers home grocery delivery through its HEBtoYou program, as well as curbside pickup — a service that enables customers to order online and have their groceries delivered right to their cars. The service is available in more than 145 locations across Texas, and is on track to reach 165 stores in 2018.
The company has also named Jag Bath, Favor’s CEO and president, as its chief digital officer, and Mike Georgoff as chief product officer for H-E-B Digital. Georgoff was previously chief product officer at Main Street Hub, an Austin-based digital marketing firm that was acquired by GoDaddy earlier this year.