Gigantti Oy sees the true value of an omnichannel approach with the help of Store Sales Direct

February 2019

Today's consumers move between the online and offline world, often researching on mobile phones and purchasing at brick-and-mortar stores. With this in mind, Gigantti Oy, a leading Finnish electronics retailer, decided to use Store Sales Direct to measure the true impact of online marketing on its offline sales.

With 41 physical stores and around 1200 employees, Gigantti Oy is Finland’s largest consumer electronics and appliances retailer. Approximately 12% of sales in 2018 came from its online store and its online presence is steadily growing stronger.

The brand knew that paid search and other online marketing channels were key drivers for offline sales, but they needed a way to gauge just how much of impact digital was having on offline sales.

"With a large brick store network we have always known that digital drives a lot of footflow and in-store sales, especially during the last couple of years when mobile has become the main traffic channel. But until now we have been unable to really measure the effect of SEM on offline sales," says Traffic Manager Ville Heinonen, who runs Gigantti's digital marketing activities.

“It was one of the first and most robust omnichannel measurement tools available on the market.”

— Ville Heinonen, Traffic Manager at Gigantti.

Data-driven insights

To address this issue, Gigantti turned to Store Sales Direct (SSD), which allows advertisers to connect search ad clicks with in-store purchases. “It was one of the first and most robust omnichannel measurement tools available on the market,” says Heinonen. “We had limited resources, so we opted for an existing solution rather than developing one of our own.”

The process was streamlined by the retailer’s Sophisticated CRM system, which uses e-receipts that are issued during in-store checkout to link consumers in physical stores with their online interactions.

The existing system provided the offline sales data needed for Store Sales Direct measurement, and Gigantti then used the SSD template to upload this data to Google Ads. The process is now automated and updated once a week, providing regular, actionable insights into Gigantti’s offline sales performance.

Measuring omnichannel results

According to Ville Heinonen, the data revealed some powerful insights. “After the first upload, we were genuinely amazed by how much SEM really drives in-store traffic and sales. For every transaction online, we saw a transaction in store. We discovered that mobile users were more likely to buy offline than online, and that users around 1 km from our stores were 1.3 times more likely to buy offline after clicking on an ad.”

Store Sales Direct also allowed Gigantti to measure how different products performed online versus offline. “For example, consumers research some product groups online then buy them offline, while certain products brought in 5x more sales offline than online. We suspected a lot of this already, but now we have the data to back up our hunches,” says Heinonen.

These findings, particularly the growth of return on ad spend, have strengthened Gigantti’s SEM strategy moving forward. Not only have they been able to implement more effective location-based bidding around physical stores, they can also adjust CPA using both online and offline sales targets.

“Previously the SEM budget was allocated purely on online sales performance, but SSD has allowed us to make an investment that reflects total sales driven by the channel. We can analyse, adjust and take action on a continuous basis.”

 — Ville Heinonen, Traffic Manager at Gigantti.

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