[ibimage==30829==Original==none==self==ibimage_align-center]Everyday, over half a billion dollars of e-commerce spending happens on the internet, yet the online path to purchase that consumers travel is too often over-simplified or misunderstood. What is this online path to purchase? Simply stated, this “path” is the different channels that customers interact with, choose, and are influenced by at different moments on a customer journey. The journey can also be understood as demand generation + demand fulfillment = purchase. It is also important to note that not every outlet will impact each purchase, and that offline channels can also influence a sale (word-of-mouth, walking past a store, and yes even radio / billboards / TV: unmet needs are uncovered everywhere and all the time). While we spend a lot of time measuring and optimizing individual channels, these multi-channel funnels reflect our world where we see ads everywhere. They allow for higher-level visualization when compared to granular A/B testing and the like.
Demand Generation
The journey starts with demand generation: if the customer does not recognize a need or desire for the product, there will be no purchase (except maybe a Vial of Official Blackhawks Ice). Demand generation can occur online or offline:
“My back hurts from sitting all day, maybe a standing desk is preferable?”
But often demand is partially assisted or 100% generated through online outlets such as display ads, social networks, and emails. Facebook ads are a perfect example of this concept because facebook ads are able to create and further demand for a good or service.
“Huh: there is an ad in my Facebook feed for a product to convert my desk to a standing desk. I only starting thinking of this yesterday when my back hurt, but let’s see how much this costs and how it compares.”
Not only could that Facebook ad generate a sale from me, but it also can create a social cycle of demand generation:
I purchase the standing desk converter, then like that company’s page, and maybe post an image of my new standing desk. My facebook friends may see that activity and possibly begin (or move along) their own online path to purchasing a standing desk. In addition, the company can promote my engagement with their brand to my friends through Sponsored Stories and other social ad units.
Demand Fulfillment
Once a strong enough demand for a good is generated, that demand must now be fulfilled. At this point, I know that I want a specific product to solve my problem, but am not exactly sure which one I want to buy.
“Of the available options, which standing desk converter is best for me?”
For example, I may search on Google for “best standing desk” and choose to click on paid or organic results. If I know I want a specific product and am searching for their website (or the best price) I may search for the company name and specific product name. At a certain point if I know what I want, I may enter the company url directly into my address bar (direct traffic). I take these actions as I move to fulfill my demand for a standing desk in the moments just before my purchase.
Re-marketing
Re-marketing can support the entire timeline of this online path:
When I visit the standing desk site initially, I decide not to make a purchase. Later, when I see ads for the exact product on Facebook and across the web, it’s brought to the top of my mind. Those ads may remind me that I want the standing desk, so I go back to the website to complete the purchase.
Conclusion
Although it is important to measure and enhance individual traffic sources, looking at the multi-channel journey allows you as a business owner or marketer to see the balance of all the complementary pieces that motivate a sale. Remember: demand is generated for some reason (online or offline) and then demand is fulfilled as we research just before the purchase. Here at Matchnode, we use strategic thinking to increase traffic and optimize conversions. By looking at the path to purchase, we are able to understand the journey holistically a customer takes to a sale and then drill down into specific digital channels that impact your clearly defined business goals.
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