Online Retailers Show Bigger Thanksgiving Sales

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

Nov. 29 (Bloomberg) -- Source Metrics Founder and CEO Scott Lake discusses online retail sales on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Retailers track sales.

Talk to us about what we know.

Every year, the retailer say that things are great.

People are shopping.

Later on, we find out what is good or bad.

What is happening today?

There will be 100 million people who will hit the stores today.

That is quite amazing.

The interesting thing is that it is a shorter shopping season.

We have a lot of competition between online retailers, who would love for you to just buy online.

Brick-and-mortar retailers want you to come to the stores.

It will be interesting to see how this plays out.

I know that the mobile commerce aspect, or the use of smart phones, will play a lot into how black friday goes.

The first part of what you said -- you could've said before.

They both want the money.

What is different this year?

Is mobile different?

Is social media substantially different?

What you will see this year is that the portion of mobile commerce transactions will go up.

It will probably be 20% of all transactions on cyber monday.

What is happening on the retail inside is that there is a battle going on with smartphone technology.

Retailers are using smartphone technology to get people into the stores.

They can interact with either their in-store apps, they can interact with discount or couponing apps, or reporting apps to get people to buy more products.

At the same time, they're making it as easy as possible for people to buy directly on their phone.

It is a battleground.

How do they measure these things?

It is very interesting.

What we do is help to measure the impact of sales from social marketing campaigns.

What that means is, as retailers are pushing people to -- as they are pushing their products out in social media, we are trying to find out how people can convert that in-store.

When a retailer sends a product from a phone and they like it, they going to the store.

We want to know how to convert it.

This is been a hard thing to do.

You usually have to do this with the point-of-sale system.

We are trying to take that out of the equation and simply allow people to have a conversion tract on their mobile phone through an unlocking code.

The cool thing about that is, from facebook, they can then lead us to track things like clicks and conversion and store location.

And the time the conversion took place.

What that means is, we get a whole other amount of data.

Specifically, around the transactions that are happening as a result of social.

The reason social is important is because, for the most part, the in-store experience revolves around apps.

For an app to be successful, they have to download it.

It has to be in your pocket.

One of my favorite metrics is that the number of people who actually continue to click is 1.3 openings since they have downloaded it.

They don't use it.

Every day, they're looking to see what their friends are doing.

If they follow brands, the brands can market to them directly.

We're trying to do leverage that use.

There are twitter users -- we are trying to convince brands to push information through the mobile stream to the communities they have already built.

They have millions of followers.

The conversion rate -- even if they appear to be small, result in large transactions.

What we're finding is that the conversion rate can be very high.

We have had -- there was a gartner analyst who said that the conversion rate could be 20% or 30% for some of these offers.

Compared to single digits for other offers.

If you can get a two percent conversion rate on an ad buy, then that is a good conversion rate.

Scott, i wonder if this is a pivotal technology shopping

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change