If you’ve been to a playdate recently, you know our client The Step2 Company. They’re the largest US manufacturer of preschool and toddler toys and the world’s largest largest rotational molder of children’s and home products. Like many parents, I have several of their products (a playhouse, a sand and water table, and a gourmet cafe play kitchen) in my home or backyard.
Tena Crock, Online Marketing Director for The Step2 Company, recently answered a few questions about what Step2 is doing with video. Her answers make it clear that Step2 is doing some great work across video, social, and cross-channel mobile campaigns in major retail stores.
Q: Tell me about Step2’s target customer. What do they care about when they shop? Can video help them choose the right product for their children?
A: Step2’s target customer can easily be described in one word, Mom. She is all about convenience, finding quality products for the right price, and having the peace of mind in knowing that she is making a purchase that will last for years to come and will be enjoyable for her children. The quality of our products, we feel, is what sets us apart. The videos do a nice job of showing our products in use and highlighting the features that we know Moms care about. How do we know they care about them? We ask. We have a group of MomShare panelists that we survey and ask questions to on a pretty frequent basis. From that, we know what is important to them. That is specifically why we feature children playing with our products in the video. Moms want to see other kids having fun with our toys so they know that their children will have fun too.
Q: Step2 does a great job connecting with customers via Facebook. How do social and video marketing work together?
A: Moms are a savvy bunch. They enjoying connecting to others and to companies via Facebook, so they make the connection factor easy on us. Moms are looking for authenticity in any sort of marketing that we do. Video gives us the opportunity to talk to Moms from other Moms in “Mom Speak”. Of course our videos are scripted, but they are written and revised by Moms for Moms. We know that in order to keep that connection with our target consumer, we need to meet her where she is able to engage with the Step2 brand, and right now, that is predominantly in the online space. We also recognize that she doesn’t have a lot of time, so we like to keep our video content short, sweet, and to the point.
Q: After getting video on your site, what’s the next step? How will you use video to connect with shoppers who may be on retailer’s sites, on social networks, or even on mobile devices in store aisles?
A: We have already started a poster program with Toys R’ Us for 2012. Since our products are often big and bulky, in store retailers often don’t have the space on their shelves to feature our products. Our solution to that was to create a large poster that features Step2 items with a QR code that links the customer to the product video. This allows them to see the product in action and have all of the details to make an informed decision about their purchase while in store. We know that it is imperative to have our videos featured on every retailer’s website that carries our products. We hope to have all of our videos pushed out to our online retailer sites in the upcoming months. Additionally, we intend on using videos to announce an email promotion or to introduce a new item to market on Facebook. Linking the potential purchaser to a video showing the product in use is a lot more powerful than a static photo.
2012 is here, and pundits are already making their predictions. (We are too). But first let’s look back on an amazing 2011, with a focus on Q4 and the holiday season.
This was a record-setting season for online retail. Cyber Monday was the busiest ever, at $1.25 billion according to Comscore.
To dive a little deeper into the record-setting activity that occurred in eCommerce video, we dived into data from across the Invodo client base. That’s the largest network of video-enabled retailers in one place. Tens of thousands of videos across about 100 retailers and major brands gives us a good read on how shoppers used video during 2011 and during the holiday season. Key learnings:
Today’s shopper relies on video more than ever – and more experienced shoppers lead the trend. As previously reported, Cyber Monday video views increased by 897% and Black Friday video views increased by 337% over 2010. But that’s only the tip of the iceberg. Looking at all of Q4 2011, video views increased by more than 3x. Why was Cyber Monday even bigger? Good question. My take – Cyber Monday shoppers are the most sophisticated and dedicated online shoppers. They know how to take full advantage of the tools available to them, from reviews and free shipping to video and 3D interactive experiences.
Shoppers prefer Facebook and email for sharing. 46% of Q4 video shares were on Facebook. Email was nearly as popular, accounting for 40% of shares, and Twitter was used 14% of the time. If you don’t have sharing enabled for your videos, you’re missing out on an easy opportunity to get additional views and sales.
Today’s holiday shopper is wired, multichannel, and multiplatform. Mobile browsers accounted for 12% of holiday season video views on Invodo client sites. Over half of that – 6.3% – was iPad, and Android was 3.5%. I saw plenty of people using their phones in store aisles to check prices and availability as well as to get product information without waiting for a store associate.
That’s a lot bigger than any discussion about HTML5 versus Flash. The same shopper may research on a laptop, stop into a store to kick the tires, view a product video on their phone while in the aisle, and ultimately purchase on their iPad. Are you leveraging your videos and other content smoothly across these touchpoints?
A final point: if this season was groundbreaking in terms of tablet usage, I can’t wait to see what happens in 2012. Reason: the Kindle Fire’s adoption rate has overtaken the iPad’s. Amazon has planted an Amazon-connected storefront in the hands of millions of consumers. Am I the only one who sees eCommerce implications there? How will that affect Apple’s iPad strategy?
Shoppers are vocal about which videos help them shop – and which do not. Shoppers using Invodo’s Ratings and Comments feature rated videos an average of 4.19 out of 5 stars. Apparel, do-it-yourself and toys received the highest marks, but multichannel retailers scored well across all product categories.
In a subset analyzed for content, videos that included a demonstration of product features receives almost a full star more than videos that did not. User comments on videos without clear product demonstrations included responses such as “I expected to see the product in use.” This is a “video coming of age” phenomenon. Consumers expect video, like any other site content, to provide value above and beyond simply creating motion to catch the eye.
Video drives conversion across product categories, but does so differently depending on type of product and type of shopper. Given the size of the Invodo client base and the depth of our analytics, there’s some surprising and useful data there. Stay tuned – that’s coming in a second post as soon as I have an hour to crunch the data and an afternoon to put it in context. If you’re not subscribed to the blog, this might be a good time to sign up.
It always makes us smile when our clients succeed! Several Invodo clients recently received recognition as one of Internet Retailer’s Hot 100 E-Retailers of 2012. What boosts companies like this to the top in eCommerce? Site optimization, personalization and videos that help consumers navigate purchase choices emerged as front-runners in the mix.
Babies “R” Us was noted as having an exceptional online store that helps shoppers find exactly what they are looking for. Babies “R” Us employs video to showcase products as well as to offer service support. In the example below, a virtual advisor explains the perks of the Rewards “R” Us program.
View content for Babies"R"Us Rewards.
Office Depot made the list for their multi-channel approach that enables customers to shop and buy anywhere. Their scan-and-go mobile app makes ordering office supplies easy, with only a few swipes of a screen. As you can see below in the videos, Office Depot pros give detailed information along with demonstrations to equip shoppers to make the best purchase decisions.
View content for ofd0003-j122 Cut Sheet Paper Multi.
View content for ofd0023-j122 Swingline Optima Grip Elctric Stapler.
December is off in a flurry! The weekend after Thanksgiving blazed the trail for online shopping with a 33% increase in online spending compared to last year (IBM). We wanted to know how shoppers used video during their busy weekend. So, we took a look at the numbers. Sure enough, online video views have boomed across eCommerce sites, and engagement is up across the board. Here are some of the key findings from the Black Friday/Cyber Monday weekend.
• On Black Friday video views increased 337% over the same day last year
• On Cyber Monday, there was an 813% increase in video views over 2010
• Video views on Cyber Monday were 2.5 times the number of views on Black Friday
Look at those numbers skyrocket! It makes sense that video views were significantly higher on Cyber Monday as it is the preferred day for online shopping. The increase in views YOY shows how video has proliferated on retail sites and is becoming the preferred way of gathering information when shopping online.
Social sharing was up for videos as well. On Friday, Facebook dominated for video sharing at 50% with email coming in at 36% and 14% for Twitter. On Cyber Monday, Facebook and Email tied at 43% with Twitter coming in third at 14%.
Holiday shoppers had a lot to say by rating and commenting on the videos they watched. Invodo videos averaged ratings of 4.3 out of 5 stars, a higher average than videos from other sources. Invodo knows how to create eCommerce video that sells, and consumers can see the difference. Comments included words like:
How does video affect conversions? Watch the on-demand Internet Retailer webinar in which BizChair.com explains how video helped them boost average ticket, reduce returns and increase conversion rates.
As online shoppers, we’re no strangers to videos on retail sites. With business goals in mind, we may even wonder where the video is coming from, why some brands seem to have a more robust video presence than others on retailer sites, and how those videos influence purchase rates.
Due to visible benefits of increased conversions, enhanced customer experiences and improved SEO, retailers are deploying as much video as they can, but need brand manufacturers to fill the gaps. Brands, or manufacturers, who bring video to their products will be the early winners in a crowded market where the consumer’s voice has so much influence. Here are three ways brands can leverage video content to maximize results:
Brand Videos on Retailer Sites
It’s no secret that retailers want video. Earlier this year the eTailing group reported that 73% of online retailers used video on product pages in 2010. For a major retailer selling thousands of products spanning hundreds of brands, universal coverage is probably not feasible. But, brands can gain an advantage and break through competitive noise by supplying video to their retailer channels.
Video viewers have been shown to purchase at higher rates and greater volumes than site visitors who don’t view video. In fact, according to Comscore, video viewers are 64 percent more likely to purchase and, on average, stay on the site for two minutes longer than other site visitors. Innovative brands that take advantage of this opportunity are a step ahead in terms of customer engagement and brand exposure, which greatly affect shopper behavior.
Brand Videos Link Social Media Channels to Purchase Pages
According to a recent survey by the Content Marketing Institute, 50 percent of manufacturers surveyed had established a YouTube presence for brand-building and connecting directly with consumers.
Click the image to view a video that shows how Crocs leverages video content on their YouTube channel with a clickable overlay button that links directly to the product page. This way, people who view the video can be easily directed to the brand’s site, making a more fluid purchase process.
Brand Videos on Brand Sites
Of course, brands will want to leverage video content on their own site, but that strategy can extend beyond product videos. Brand sites that offer instructional or how-to videos may have a better chance of standing out to the consumer. The brand website is an ideal place for consumers to be directed to when they are researching or looking for help. These types of videos guide shoppers through the purchase process, leading to higher conversions.
Engage Consumers Anywhere they Shop
Placed on the brand’s website, a retailer’s site, social media pages, viewed from a kiosk, or launched on a mobile device from an in-store QR code scan, brand (or manufacturer) video engages consumers, boosts sales and projects the brand voice across all shopping channels.
See more examples of Invodo Video for Brands here.
Guest Post by Gary Lombardo, Commerce Solutions Marketing at Demandware
Shopping is an interactive sport. While smartphone wielding consumers are the main players of the sport, retailers are the ones who set the field of engagement, both online and in the physical world. A variety of methods, tools and technologies exist for retailers to engage consumers, but few are as mature and easy to utilize as 2D codes.
The Rise of 2D Codes
2D codes are two dimensional (hence the name “2D”) images encoded with information. The information can be decoded with a camera-driven scanning application, which will perform a variety of functions including displaying texts, linking to a specific URL, or linking to video content. 2D codes are used for a variety of industrial uses, but 3 key types are used for consumer-facing uses:Quick Response Codes (QR Codes), Microsoft Tags (MS Tags, aka High Capacity Color Barcode) and barcodes. There are different reasons why retailers would use one type over another.
QR Codes and MS Tags in particular have risen in adoption among consumers, especially those that use smartphones. Smartphones provide consumers with the hardware (including the camera) and a platform for the software applications (i.e. ScanLife, ShopSavvy, MS Tag and others), making 2D codes easily accessible and practical for shopping like never before.
Forrester estimates that adoption of 2D code reading applications has risen to 15% in 2011 among smartphone shoppers and is expected to continue to rise in the future. Indeed, it’s difficult today to walk down the street or into a store or open a newspaper or magazine without finding a 2D begging to be scanned.
Uses of 2D Codes
2D codes are applicable throughout each stage of brand engagement with the consumer, which make them a great tool for retailers to create a more interactive shopping experience and connect the online and physical worlds. If applied properly, the benefits retailers can reap include greater brand recognition, greater online and in-store sales, an increase in average order value, greater customer satisfaction and repeat purchases, as well as reduced return rates and support costs. To realize these benefits, retailer should focus the application of 2D codes around four main uses, namely to:
1. Create brand awareness with consumers.
2D codes are a great tool for marketers to capture the attention of shoppers—particularly those on the go with mobile devices and those inundated with other information sources– to create market awareness and craft brand perception. Barney’s New York used QR codes as part of a “Back Stage Campaign” in early 2011 where they displayed ads in the New York Times and online that contained QR codes which linked to online, content-rich “backstage” stories of the products. This energized the approach to traditional advertising and helped drive brand awareness among consumers who may have otherwise not been reached.
2. Share information to educate consumers.
2D codes can guide potential consumers towards purchase by providing them information about products, services, events, and more. Columbia Sportswear produces world-class outdoor apparel for consumers who are interested in learning about how the product was produced, what materials were used to produce it, what conditions the products are meant to be used in and what additional features the product contains that may not be readily apparent. They use QR codes as part of in-store signage and hangtags on products in company stores, as well as other retailers who distribute Columbia gear, to provide consumers with more information about products through video and other content while standing in the store aisle.
Electronic Arts, a leading producer of video games, provides its distributors with in-store digital signage that contain QR codes for content samples of their products. For their game Dragon Age II, shoppers could scan the QR code and get a video demo of the game.
3. Drive consumers to purchase.
2D codes give retailers a unique opportunity to convert sales, especially when they help solve specific problems consumers face, such as cutting down on checkout time or offering immediate rewards. In addition to using QR codes to share information about how their coffee beans were produced, Ethical Beans Roastery and Ethical Bean Xpress Café give consumers the ability to scan QR codes on their products, allowing shoppers to skip waiting in lines and pick up the orders at checkout. Axis Salon, a trendy hair salon in Washington DC, uses QR codes in its storefront that link to videos featuring beauty icons and coupons for discount services—all helping to drive consumers to purchase.
4. Foster customer loyalty post-purchase.
After the sale, 2D codes can drive foster customer satisfaction by providing extra services, support and personalized offers. Nike uses QR codes in its stores to allow consumers to “Like” a product on Facebook, enabling consumers to share their affinity for a brand through recommendations on Facebook. A logical extension to this concept would be to provide rewards (loyalty points, mobile coupons, immediate discounts, etc.) for shoppers who provide such feedback. Ikea entertained the idea of using QR codes to provide video instructions on how to assemble products, such as furniture, making the post-purchase process a more enjoyable one. 
Similarly, QR codes can serve as an easy way to locate product manuals online or warranty information, which could be a real benefit to consumers who often do not keep such information that come with the products, and need to locate them immediately when something goes wrong. This would help cut down on support costs for retailers, in addition to fostering customer loyalty post-purchase.
The Future of 2D Codes
While 2D codes have reached a level of maturity where they are an effective tool for retailers today, they still have a number of challenges to overcome– standardization of code technology (open QR codes v proprietary MS Tags), reader availability, and deeper level consumer awareness beyond where it’s at today– optimally reaching the same level of consumer awareness that UPC barcodes enjoy today. They also face long-term obsolescence from Near Field Communication (NFC), but that is a ways off in the future given NFC nascent state at the present. Bottom line is that 2D codes do not require a lot of time or money to implement and can have large potential returns, so retailers should experiment with them while the cost of learning is low.
Gary Lombardo leads Commerce Solutions marketing at Demandware, a trusted, global leader in on-demand ecommerce. As part of his role, he helps retailers navigate the world of multichannel, mobile and social commerce. Gary tweets @garylombardo and can be reached via email at glombardo at demandware dot com.
Be sure to download the whitepaper “Quick Response Codes in a Multi-Channel World” to learn more about how retailer’s should take advantage of 2D codes.
Step2 is the largest manufacturer of preschool and toddler toys in the United States, with brands including Step2™ and Infantino™. The Invodo production team had recently wrapped up production of a large number of product videos for Step2 at our production facility in Dallas-Fort Worth. Rather than asking that the products be shipped back, the Step2 team asked a great question: “are there any charities in the area that would benefit from having $3,500 worth of these products donated?”
The Step2 and Invodo teams quickly identified the Children’s Medical Center of Dallas as a place where such a donation would have a positive impact. Step2 offers active, real-life play experiences with product such as play kitchens, climbers, and children’s activity desks. Such experiences are vital to the growth and development of all children, and providing outlets for active play can be especially important in a hospital environment.
On the morning of Wednesday, November 16th, team members from both companies delivered the products to the hospital. The toys were immediately put to use in the hospital’s lounge and play area, where they’ll provide a lasting benefit to many children and families.
As Invodo client partner Brandon Sockwell put it, “We’re proud to work with a client like Step2. They’re a great team who understands the importance of giving back. It’s fantastic to be able to do something like this, especially during the holiday season.”
In a recent study, 84 percent of cross channel shoppers said that a combination of in-store and online experiences best suited their shopping needs (eMarketer, 2011). For retailers who need a way to engage consumers in-store, through mobile and online, video is a strategic asset. Here are six creative ways to use video to reach consumers anywhere they shop this holiday season.
1) “On device” videos
Use videos on in-store devices to engage with customers as they shop. On device videos play from demo products as customers browse through items on display.
By using videos “on device” you increase the time shoppers spend interacting with the product. This extra involvement educates customers, which has a significant impact on purchase decisions.
2) On mobile launched through a QR code
Quick Response (QR) codes have gained momentum as cross-channel shopping aides. Launching video on mobile devices gives customers an easier way to gather information. And, by using a QR code, retailers have direct control on the content accessed through a scan.
Some retailers place QR codes at the point of purchase in-store. That way, customers can have a more in depth view of the product features as they shop. According to Google, 79 percent of smart phone users employ their device to help with shopping, and 70 percent use them while in store (Google Mobile Ads Blog, 2011).
3) In catalogs or direct mail
Now, even collateral delivered non-digitally can utilize QR codes with videos that launch upon scanning. And that’s because videos are capable of delivering a unique experience anywhere the consumer has their smart phone.
4) In email marketing
Incorporating video in email has been shown to increase click-through rates by two to three times (Forrester, 2010). That’s because video is more stimulating and engaging than text alone. Read more about using video in email marketing.
5) Site welcome videos
Welcome visitors to your site with short clips. Don’t think of this as an advertisement. Think of it as a welcome at the front door, offering unique information about how to have the best website experience.
Especially on retail sites with many product categories and complex navigation, an intro-video helps site visitors understand how to navigate optimally for their needs.
6) Video teaser for an unreleased product
Slightly different from a viral video because of sales focus, product videos used as teasers ramp up excitement around a new product or feature release.
A major appliance retailer recently ran a campaign in which they put videos on their website for products that were not available to purchase, in-store or online, until a later date. When that date arrived, they found that over 30% of customers who came into the store to buy one of the newly released products had watched the product video online. Essentially, the pre-release product videos had a direct impact on in-store traffic, increasing sales and making the customers’ shopping experience more successful.
Happy Holiday Selling!
Incorporating video in a variety of ways across multiple platforms provides benefits for both customer and retailer. For the customer, videos provide a more educational, engaging and personable way to gather information. For retailers, including video yields benefits of increased time on site, higher customer satisfaction, reduced returns, lower service costs, better SEO and much more.
How else are you using video this holiday season? Let us know in the comments.
We hope your Halloween weekend was filled with candy and costumes. Last Monday, the Invodo office erupted with a flurry of eccentric attire. You can see the whole expo on our Facebook page, but here are a few of the highlights.
We had some costume shout-outs to social media sensations. The Hipster Mermaid could be found shrugging off all things too mainstream, including the sea. Our Director of Marketing appeared as one of the year’s YouTube favorites, the apathetic Honey Badger. Celebrities and characters strutted down the aisle for the 4th Annual Invodo Halloween Costume Contest, but only one costume concept took home the prize.
Here are some of the favorites:
Visit our Facebook to see photos of the winning costumes.
We’ve seen the number of videos viewed on retail sites spike in the last few years as consumers become more comfortable watching video online. Comscore reported that video views on retail sites have increased more than 40% since 2009.
Why has there been such a shift towards video? One reason is that video communicates better than text alone. Essentially 90% of the population learns best by visual or auditory stimuli. Video provides both.
Last week Craig Wax, Invodo CEO, spoke about the future of online video for business at Innotech in Austin, TX. Here are three key takeaways from the presentation:
1) Online experience influences in-store purchases.
With the ease of online shopping, no longer must we trudge to the store and scour the aisles only to find that the product we wanted is out of stock. Yet in addition to doing product research online, most shoppers will also visit a store this holiday season.
Hal Lawton, President of Home Depot Online, recently said, “45 percent of in-store shoppers pay a visit to homedepot.com first.” (Retailgeek.com, 2011) That means customer experience online has direct influence on in store purchases. Crafting the best possible online experience is top of the list for both online and brick and mortar businesses.
2) Video breaks down the walls between on and offline shopping.
Tablets and smartphones have revolutionized the way people shop; 84 percent of smartphone owners use their devices to search local retailers (ROI Research Inc, 2011). Strategies for the upcoming months must focus on ways to best communicate with the mobile audience.
Just like today’s consumer, video has moved past product pages. Using scannable QR codes, video is accessed anywhere the consumer takes their smart phone. Over the past year, we’ve seen video-linked QR codes appear on in-store displays, catalogues and other printed materials. Unlike text, video thrives on the small mobile screen because it is easily accessed and visually appealing.
3) Video improves customer experience, increases conversion and engagement, and improves SEO. (Lenovo Case Study)
We wanted to see just how much Invodo video impacted business metrics. Here are the results we saw after analyzing data from Lenovo’s videos and eCommerce site:
The web is no longer about text and images. Video dominates internet traffic, and businesses are shifting from text based communication to the more captivating medium of video. As we gear up for the holiday season, expect to see more cross-channel strategies take the stage. We’ll be watching the trends and keep you up to date with the latest in how video for business helps retailers sell more online and in-store.
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