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Cross-Channel Shoppers: Are ROBO Shoppers Faking Out Your PPC Conversion Rate?

Courtesy of Business Know-How Thursday, May 28, 2009, 11:19 AM ET

We've heard it for years. Heck, I've said it myself countless times before: "Click-throughs are great, but it's conversions that really matter." However, consumer research during the past several years has shown a growing trend that most emarketers believed would have eased by now.

What's happening is that consumers -- in increasing numbers -- are researching online before buying offline (ROBO). According to ecommerce software provider MarketLive (as reported earlier in the year by Internet Retailer magazine), "The picture emerging from the data shows many consumers using the Web to search for deals, moving quickly from site to site, and often going into stores to buy after researching online."

The ROBO trend isn't new, and while it may be spurred by the current economy, that wasn't the case in years past. The Pew Internet & American Life Project reported an increase of 8% in this area from 2000 to 2007. As of September 2007, 81% of Americans typically did research online for a product they may buy offline. As many as 85% of those shoppers agreed with the statement, "I prefer to see things I buy before I buy them."

eMarketer agrees with those findings. "The most-trod cross-channel shopping path starting online (i.e., from a Web site, e-mail, or an online newspaper circular) was browsing a Web site and then buying in a store (37%)."

So what does this all mean for pay-per-click (PPC) advertisers? In actuality, your conversion rate could be a good deal higher than your analytics show because Web statistics report what happens only on your Website. Visitors come and are recorded as a click-through from your ad to your site. Visitors click to different pages; the stats pick up on that. A conversion takes place online; it's also noted. But what if the customer leaves to buy offline at your physical store? Then you record a click-through, but no conversion. Instead, it can drive your bounce rate up while stalling out your conversion rate.

Stats programs aren't capable of tracking offline movements. Yet, technically, you still made the sale.

Depending on your definition of a conversion, your PPC campaign may be doing much better than you think it is. Even if you have the most sophisticated analytics software available today, ROBO shoppers could be skewing your results. The problem is there's no accurate way to track offline conversions.

So how can you account for ROBO shoppers? Here are two ideas.

#1: Add a "Buy in Store" option. On each product page, add a button that reads "Buy in Store." When clicked, a message appears with a discount code (best way to track), the store phone number, and a list of locations. When the discount code is given to the cashier at your retail location, you'll know immediately that this customer researched online and bought offline.

#2: Offer in-store pickup. The customer would go through the same motions as with purchasing online, but the "shipping" option would default to in-store pickup. Shoppers would research and buy online, and then drive to your store to pick up the purchase. Include a bit of copy that lets customers know if they don't like the item once they see it in person, a full refund will be issued on the spot.

Although technology is getting more sophisticated by the nanosecond, it would be unrealistic at this point to believe you can track all ROBO sales from start to finish. Using a little creativity, however, can give you a better handle on what's really happening with your conversion and bounce rates.

Copyright 2009, Karon Thackston, All Rights Reserved

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