Top of Funnel Marketing

 Top-of-funnel marketing is about more than just creating buzz; it’s about laying a sustainable foundation for growth. Imagine it as the first chapter of an engaging novel, where the story begins, intrigue is created, and the relationship with the reader—or in this case, the customer—starts to form.  

Historically, due to the difficulty in tracking and measuring the impact of these top-of-funnel activities, brands have gravitated towards bottom-of-funnel advertising, where results are more tangible, like direct sales and conversions. However, this approach often overlooks a critical aspect of customer acquisition and brand building.  

According to a Fospha report, brands that consistently invest in top-of-funnel activities for a minimum of 10 months are likely to see reduced customer acquisition costs and a more robust Return on Ad Spend (ROAS). Specifically, the report reveals that brands prioritizing long-term brand awareness strategies can improve their ROAS by 42% and decrease acquisition costs by 35%, in comparison to brands that concentrate exclusively on conversion-focused activities. 

The Challenges of Current Measurement Practices 

The digital advertising landscape has evolved significantly over the past five years, growing more complex and demanding advanced measurement techniques.  

Traditional pixel- and cookie-based methods, which have been the mainstay of most brands, are losing their effectiveness due to regulatory changes like GDPR, CCPA, and iOS 14.5, which prioritise consumer privacy over technological efficacy. This has led to a significant reduction in visibility, especially in the early stages of the customer journey. Consequently, marketing attribution models that do not account for top-of-funnel activities may overestimate the effectiveness of lower-funnel activities. 

Heading into a deeper recession in 2024

 As we enter 2024, we expect to continue heading into a recession.

According to a monthly survey conducted by Bloomberg, the likelihood of a US recession in 2023 jumped to a whopping  70% – as a series of Federal Reserve interest hikes drove fears of a stagnant economy. To make matters worse, a rise in US unemployment throughout the year has also been predicted to cause more pain in the labor market.

On the contrary, to remain competitive in the market, gross margin in retail is expected to go down. In this paradigm, pressure will rise on spending like advertising.  Consumers will start scouting for cheaper products causing retailers and advertisers to provide low-priced products to win market share. Therefore, the road ahead for retailers is going to be bumpy.  Per UBS analyst report, 50,000 store closures in the US is expected over the next 5 years. News of mega-stores like Bed Bath & Beyond potentially going to bankruptcy has emerged.

Based on our 2020 and 2022 economic analysis, retailers most likely will have unsold inventories to clear during the 2023 November Holidays. That said, consumers will see more SALE ads over special promotions, alongside noticing a drop in average pricing in shopping ads.

Tips for 2023 eCommerce strategies

Consumer spending, which has been decreasing in the last 3 years, will most likely fall in 2023 as well. Discounts, Promotions, and cheaper prices are the only ways to attract customers to stretch their wallets.

Despite the bleak outlook, retailers utilizing marketing intelligence for their pricing, advertising, and promotions will most likely survive and gain an edge in 2023. Here are a few tips for retailers and advertisers to succeed in 2023 –

1. Optimize eCommerce trustworthiness factors to boost conversion

Trust plays an integral role in converting business. To ensure a high conversion rate, it is imperative to build a customer’s trust in your eCommerce ecosystem. It is fair to say that online shoppers are often reluctant to make a purchase due to uncertainty on an unfamiliar channel or brand or product. For an eCommerce business, gaining trust is crucial as customers are unable to physically see the product. Businesses must focus on optimizing trustworthiness as it will have tremendous impact in the conversion. That being said, trust is a psychological state that can be easily influenced.

Here are the ways to optimize your eCommerce trustworthiness.

1. Showcase customer reviews and ratings, use trust badges and seals, offer secure payment options, display contact information prominently, maintain a strong presence on social media – all these attributes gain trust from your customers. Additionally, have good shipping & return policies, and enhance your website’s user experience. This will reassure your company’s transparency and guarantee customer satisfaction. All these should lead to increased customer loyalty and sales. For instance, Google rewards the “trusted store” badge to stores offering fast shipping, good return policies, a high-quality website, and good ratings – all the factors that signify a good customer experience.
2. Shopping ad extensions is another great way to improve the trustworthiness and effectiveness of your shopping ads. Ad extensions allows you to provide additional information about your product/business in your ad, which will help increase the credibility of your ad and the likelihood of users clicking on it. For example, you can use the “product review & ratings” extension to display the average rating your business has received from customers. This can help potential customers feel more secure during their purchase journey.
3. Offer competitive shipping and return policies to add a layer of trust and credibility for your brand. Customers generally prefer to shop with brands that offer free shipping or expedited shipping options. A hassle-free return policy will not only help build trust with customers but also create a good brand image since you have taken that extra step to ensure the customer’s satisfaction. For example: if you offer a 10-day return policy while your competitor is offering a 3-day return, customers are more likely to choose your product vs your competition. Additionally, having a local presence in the market is also a plus point. Customers will know you exist in their market. Offer 24/7 customer helpline and chat for your customers to get feel like they can contact you easily.
4. If you are a brand, you should have a MAP policy in the US and Canada. Having a MAP and channel policy helps ensure your brand’s product’s price and channel consistency across the digital shelves.  You must clearly communicate your MAP policy to your retailers & partners and provide them with the necessary guidelines for selling your products. Setting up a MAP policy and ensuring its enforcement helps brand maintain their value and ultimately improves trust and credibility amongst resellers and ultimately shoppers.

2. Optimize ROAS by lowering advertising cost

Here are six ways to achieve this –

1. Pursue Holistic Search Strategy to mobilize budget across SEO and SEM to dominate Google SERP. In 2023, our top Auto retailer client increased 20% revenue by redirecting ad spending from keywords where they were doing well in Organic.
2. Improve your keyword quality score to boost impressions and CTR with lower CPC. We have noticed retailers not utilizing special offers during this adverse time. We humbly disagree with this strategy as it is imperative to offer discounts through special offers over dropping prices. This simple tactic can improve your ad quality and reduce your CPC.
3. Optimize your product experience by focusing on product title, price, quality, color, description, promotions, reviews, etc. This will not only increase your chance of conversion but also help improve your keyword quality score.
4. Ensure affiliate compliance to reduce revenue churn and better partner with your loyal affiliates.
5. Monitor violations in your brand term that are inflating your CPC.
6. Enforce MAP Compliance to avoid pricing wars reducing your margins and brand value.

3. Dynamic pricing optimization to maximize margin

To be on top of the game, retailers must have insights into current market pricing to ensure optimum pricing to beat competitors. The approach taken for dynamic pricing strategies to penetrate while maximizing margin from the market will be critical for growth.

4. Strategic promotional planning to attract consumers

Consumers will always be gazing for promotions. In this adverse economic situation, a strategic promotion plan will help optimize advertising and conversions.

Conclusion

As the pandemic-riddled period comes to an end, innovation becomes a key factor for survival in the volatile market of today. Furthermore, with a shift in the retail landscape consumer expectations and demands will be a leading force in 2024.

Retailers and advertisers must remain flexible, adaptive, and affordable to get an edge against competitors to maximize their market share. They should use a unified marketing intelligence solution that showcases them versus competition in the eyes of the shoppers on the digital shelves. We recommend retailers use a data-driven approach to developing their marketing strategies to improve their chances of success in 2024.

Insights to empower 2023 ecommerce strategies

 

30-second summary:

• Retailers should use a data-driven approach to develop their marketing strategies to succeed in today’s volatile economy
• Current tumultuous economic conditions are disrupting the retail landscape by forcing store closures and forecasting bankruptcies
• Marketing intelligence for pricing, advertising, and promotions is critical in gaining an edge against competitors
• Managing Partner at GrowByData, Prasanna Dhungel, shares ecommerce strategy tips for 2023 to attract, convert and retain customers

The economy in 2020 was in a volatile state, primarily due to the pandemic. In November 2020, despite rising Covid cases, retailers were providing SALE offers on 13% of ads and special promotions on only 7% of ads. On the other hand, consumer spending growth was recorded at 9%.

Fast-forward to 2021 – The economy was recovering from COVID that was evident in consumer spending growth of 13.5%. With a slightly eased supply chain and better economic conditions, November holidays in 2021 saw 14% growth in special offers, which had grown twice as much compared to 2020. Furthermore, SALE offers were seen on 12% of ads which was slightly lower than the previous year.

However, in 2022, the Russia-Ukraine war coupled with unfathomable COVID rise in manufacturing nation like China impacted the economic indicators once again. With rising inflation, consumer spending had fallen drastically to mere growth rate of 6%-8%. For this year’s November Holiday, 60% of consumers mentioned discounts and promotions playing a huge role in their purchasing decisions.

Surprisingly, during November 2022, there was a drop with only 8% focused on special promotion ads.  However, SALE offer was in a rise visible in 15% of ads.

Keeping up with the fluidity of the modern consumer

 Humanity’s relationship with digital media is changing at an extraordinary pace. In 2021, adults in the United States were already spending an average of 485 minutes a day with digital media. That is over eight hours every day. 31% of U.S. adults claimed they go online “almost constantly” based on a survey from the Pew Research Center.

Because of the uptick in digital usage, we’re also exposed to thousands of ads daily. This represents a dramatic increase over the last decade thanks in large part to social media, among other apps, serving up heavy doses of targeted advertising.

Consumers are fully accustomed to the onslaught of ads, but expectations for relevancy are high. 71% expect companies to deliver personalized interactions, and 76% get frustrated when this does not happen. So, while they spend more time engaged with digital media and online activities and want the abundance of engagements personalized and meaningful, they also aren’t eager to give up personal information to make that possible.

All of this makes building a unified digital identity, built around email addresses, even more important.  Utilizing the email address as the key identifier is the most effective way for businesses to ensure they’re reaching the intended consumer with consistent, personalized messaging across multiple channels.

 When MarTech and data explode

The pandemic brought about a wave of behavioral changes in consumers. From increased eCommerce sales and digitally purchased groceries and household goods, to reduced loyalty as consumers sampled new brands. Many of these changes seem to have staying power.

Managing digital identities becomes necessary, but more challenging, when you consider the expanding universe of data, devices, platforms, and channels comprising the digital world.

The MarTech ecosystem is bulging at the seams with companies trying to capitalize thanks to these new opportunities. As of 2022, there were nearly 10,000 MarTech vendors offering solutions, growing a staggering 6,521% from 2011 to 2022 (ChiefMartec).

The cause for concern runs high. With so many applications and solutions in play at any given time, it is easy to understand how organizations struggle to keep consumer data up to date and synced appropriately. It’s common to discover companies have conflicting or incorrect information.

Moreover, people may use different email addresses depending on how and with whom they interact. For example, online shopping. Retailers may have a customer’s email linked to their billing information, another tied to promotions and loyalty programs, and perhaps a third from contact with customer support. Finding that multiple email addresses link back to the same person is highly beneficial.

Not only do consumers use multiple email addresses, but when close to 30% of data decays annually, it’s likely some of them created or are using a different email address than what exists in a company’s system. Targeting can only reach the audience if based on up-to-date and preferred information.

Despite the growing number of apps in companies’ tech stacks, businesses are recognizing the importance of properly and actively managing digital identities by placing them in the hands of the marketers and data analysts that use these profiles every day. This renewed focus is the only way forward to meet customer’s expectations for personalization, keep retention high, and effectively improve digital marketing overall.  

Optimize Google’s new Interaction to Next Paint metric

 The Core Web Vitals are a set of metrics that Google has defined to measure how good a website’s user experience is. They first became a ranking signal in 2021.

While the metric definitions have been tweaked over time, the introduction of the Interaction to Next Paint metric is the biggest change since the launch of the Core Web Vitals initiative.

What is Interaction to Next Paint (INP)?

Interaction to Next Paint is a metric that evaluates how quickly your website responds to user interaction. It measures how much time elapses between the user input, like a button click, and the next time the page content refreshes (the “next paint”).

To rank better in Google this interaction delay should be less than 200 milliseconds. This ensures that the website feels responsive to users.

How are the Core Web Vitals changing?

Google has announced that Interaction to Next Paint will become one of the three Core Web Vitals metrics in March 2024. At that point a website that responds to user input too slowly could do worse in search result rankings.

INP will replace the current First Input Delay (FID) metric. While FID also measures responsiveness, it is more limited as it only looks at the first user interaction. It also only measures the delay until the input event starts being handled, rather than waiting until the user can see the result.

Currently only 64.9% of mobile websites do well on the Interaction to Next Paint metric and it will be harder to get a good INP score than a good First Input Delay score.

How can I measure the Interaction to Next Paint metric on my website?

Run a website speed test to see how fast your website loads and how quickly it responds to user input.

Open the “Web Vitals” tab once your test is complete. You can see the Interaction to Next Paint metric at the bottom of the page.

In this case only 38% of users have a good INP experience.

How can I optimize Interaction to Next Paint?

Interaction delays happen when the browser needs to perform a lot of CPU processing before it can update the page. This can happen for two reasons:

Resources

Analytics The 2023 B2B Superpowers Index

Analytics Data Analytics in Marketing

Digital Marketing The Third-Party Data Deprecation Playbook

Digital Marketing Utilizing Email To Stop Fraud-eCommerce Client Fraud Case Study

• Ongoing background tasks prevent the user input from being handled
• Handling the user input itself is taking a lot of time

Background tasks often happen during the initial page load, but can happen later on as well. They are often caused by third party code embedded on the website.

Responding to a user interaction can require a lot of processing. If that can’t be optimized you can consider showing a spinner to provide visual feedback until the processing task is complete.

Running JavaScript code is the most common type of processing, but complex visual updates can also take a long time.

Use Chrome DevTools to analyze performance

The Chrome DevTools performance profiler shows what tasks are taking a long time and should be optimized. Start a recording, click on an element on the page, and then click on the longest bars in the visualization.

This allows you to identify whether the code comes from a third party or from your own website. You can also dive deeper to see how the task can be sped up.

Check the Total Blocking Time metric to identify background tasks

The Total Blocking Time metric tracks how often there are background CPU tasks that could block other code from running. If the user interacts with the page while a task is already in progress then the browser first completes that task before handling the input event.

You can use tools like Google Lighthouse to see how this metric can be optimized.

If processing-heavy tasks on your website are part of your core website code you’ll need to work with your development team to optimize these. For third parties you can review whether the script is still needed, or contact customer support of the vendor to see if it’s possible to optimize the code.

Monitor Interaction to Next Paint

Want to keep track of how you’re doing on INP and other Core Web Vitals? DebugBear can keep track of your website speed and help you optimize it.

Start a free 14-day trial today and deliver a better user experience.

Conclusion

The Interaction to Next Paint metric represents the biggest change to Google’s Core Web Vitals since they were originally announced. INP addresses the deficiencies of the previous First Input Delay metric and provides a better representation of how users experience a website.

Check how your website does on the Interaction to Next Paint metric before the ranking change is rolled out in 2024. That way you’ll have plenty of time to identify optimizations and make your website faster.

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