PetSmart Working Toward E-Commerce Future with Web Analytics and Customer Experience

The Company: PetSmart

PetSmart operates 1,352 stores and 200 in-store PetSmart PetsHotels® dog and cat boarding facilities in the United States, Canada and Puerto Rico. The company provides a broad range of competitively priced pet products and in-store services including pet adoption, boarding, grooming and training. PetSmart stores are stocked with more than 10,000 products and the company is also a leading online provider of pet supplies and pet care information (About PetSmart).

Company founders Jim and Janice Dougherty introduced their pet superstore concept as Pacific Coast Distributing, Inc. in 1986. Their first two stores, originally called PetFood Warehouse, opened in Arizona in 1987. In 2004 the company launched PetSmart® PetPerks®, a customer loyalty program, to provide pet parents with better communications and valuable offers (PetSmart History, 2014).

The Challenge:

According to some media repots, the pet-goods retailer has struggled to turn around its business as sales slumped, while top shareholders Longview Asset Management LLC and Jana Partners LLC have pushed the company to explore strategic options, including a sale in 2013-2014. PetSmart, meanwhile, has been reviewing its capital structure and has said that it looks forward to engaging with its investors earlier this year. In spring 2014, The Wall Street Journal reported that PetSmart was holding talks with investment banks (Calia & Prior, 2014).

One of the strategic moves to help the retailer was the purchase of Pet360. PetSmart recently announced a deal to buy online pet specialty retailer Pet360 for $130 million, with the possibility of additional performance-based payments totaling up to $30 million by the end of 2016. The deal closed this past September (Calia & Prior, 2014).

What web analytics strategy is PetSmart currently using to help generate greater online sales of products?

This year, PetSmart is focusing its customer strategies around three areas: connecting with pet parents in a personalized way, expanding its products and services, and growing its most valuable customers.
 
"Across all of retail, technology is rapidly changing how customers interact with retailers, and we believe that in order to stay relevant with our customers, we are going to need to accelerate our deployment of omnichannel capabilities," said PetSmart CEO David Lenhardt (Giannopoulos, 2014).

PetSmart is working on ways to better connect with pet parents. One of the ways the retailer is doing this is by leveraging its customer data and analytics to increase personalized connections. With this use of technology, PetSmart will enhance the customer experience. The company is hoping to link 90% of sales to individual customers (Giannopoulos, 2014).

"We have the data and we know that whether it's in our stores, online or through our customer loyalty program, that personally relevant connections lead to higher levels of customer engagement and spend," said Lenhardt. "We've been investing in new capabilities to help us capture and use customer and pet data, and this year, we will deliver on new methods to use this data to drive growth." (Giannopoulos, 2014). 

Another way the retailer is increasing its sales is through testing and building a foundation for future omnichannel growth. Just this year, customers began to notice these improvements. The company launched a new website platform during Q1 of 2014. The platform was projected to deliver the experience that customers expect, including product image zoom, enhanced natural search performance, improved item comparison tools and better presentation of item-level content such as videos, reviews and color swatches. These enhancements are only a benefit for the company if properly measured using the right web analytics tools. Although the company does not disclose which tools they use, it can be assumed that they will be measuring metrics such as time spent on their new page compared to their old platform as well as click-through rates on optimized product views. More examples of measurements that PetSmart should be paying close attention to are some common e-commerce retailer, Key Performance Indicators or KPIs.  For example, it may be a goal for PetSmart to increase site traffic 50% in the next year with their new web platform. Relative to this goal, a performance indicator might be the number of unique visitors the site receives daily or which traffic sources send visitors (pay-per-click advertising, search engine optimization, brand or display advertising, or a YouTube video) (Hayes, 2013).

PetSmart is also paying close attention to the mobile visitor. Earlier this year the company’s redesigned mobile website, which launched this fall. This is important because customers' use of mobile devices continues to dramatically increase. Today, about one-third of PetSmart.com visits are via smartphone, according to Lenhardt (Giannopoulos, 2014).

"We want to be there for our customers however and whenever they shop, which is why we are excited to launch an enhanced mobile web experience with expanded shopping tools for our customers, like product comparisons, brand shops and wish lists, mobile content for services, adoptions and pet care guides and mobile optimization of our PetPerks loyalty program and account management," noted Lenhardt. "This new mobile site will support e-influence and drive mobile e-commerce conversion." (Giannopoulos, 2014)

Lenhardt’s dedication to expanding mobile technology and optimizing the company’s mobile website is proof that PetSmart is moving in the right direction.

Recommended Web Analytic Tools & Tactics:

Goals (hypothetical) that PetSmart should be looking to accomplish with their recent strategy to embrace technology as it relates to their website:

Goal 1: Boost sales 10% in the next quarter.  KPI’s- daily sales, conversion rate, site traffic

Goal 2: Grow regular website traffic 25% in the next year. KPI’s-site traffic, traffic sources, promotional click-through rates, social shares, and bounce rates.

Goal 3: Increase conversion rate 2% in the next year. KPIs include conversion rate, shopping cart abandonment rate, associated shipping rate trends, competitive price trends.

How can PetSmart measure these goals?

Google Analytics is one of many tools PetSmart can use to monitor their website data and track KPI’s.  One of the benefits of Google Analytics is that it allows companies both large and small to measure all aspects of their data as it relates to their website.  Since PetSmart is a major e-commcerce retailer, it is important for the company to understand what items customers are clicking on, but not purchasing. Another piece of data that GA can help PetSmart with is “cart abandonment” statistics.  Many retailers today are losing sales due to items placed in online shopping carts that are ultimately never purchases.  Approximately $4 trillion worth of merchandise will be abandoned in online shopping carts this year, and about 63% of that is potentially recoverable by savvy online retailers, according to BI Intelligence estimates (Smith, 2014). 

PetSmart can also use Google’s Acquisition reports to understand how users are getting to their website and which ads are most effective.  Knowing which channels are driving traffic and sales means you can focus on the channels that are most effective for you. Understanding what other websites are linking to you and the volume of traffic they're driving can help PetSmart understand where other opportunities may exist.

There are a variety of custom reports and analytics that can help PetSmart achieve increased sales online.  PetSmart seems to have taken a step in the right direction by embracing new technology as it relates to e-commerce.  They recognize the future of their business is in the hands of consumers who are increasingly looking to the web for many items, including pet supplies.

References:

About PetSmart. (2014, January 1). Retrieved December 7, 2014, from http://phx.corporate-ir.net/phoenix.zhtml?c=93506&p=irol-homeprofile

Calia, M., & Prior, A. (2014, August 19). PetSmart To Explore Strategic Alternatives, Including Possible Sale. Retrieved December 8, 2014, from http://www.wsj.com/articles/petsmart-to-explore-strategic-alternatives-including-possible-sale-1408488155

Company History. (2014, January 1). Retrieved December 7, 2014, from http://phx.corporate-ir.net/phoenix.zhtml?c=93506&p=irol-timeline

Giannopoulos, N. (2014, March 24). PetSmart Leverages Analytics for Personalized Experience | Retail Best Practices | RIS News: Business/Technology Insights for Retail, Supermarket Executives. Retrieved December 8, 2014, from http://risnews.edgl.com/retail-news/PetSmart-Leverages-Analytics-for-Personalized-Experience91783

Lazazzera, R. (2014, June 26). Google Analytics For Ecommerce: A Beginners Guide – Shopify. Retrieved December 7, 2014, from http://www.shopify.com/blog/14681601-google-analytics-for-ecommerce-a-beginners-guide

Hayes, M. (2013, February 21). 32 Key Performance Indicators (KPIs) for Ecommerce – Shopify. Retrieved December 8, 2014, from http://www.shopify.com/blog/7365564-32-key-performance-indicators-kpis-for-ecommerce

Souers, M. (2008, June 3). What Makes PetSmart So Fetching. Retrieved December 7, 2014, from http://www.businessweek.com/stories/2008-06-03/what-makes-petsmart-so-fetchingbusinessweek-business-news-stock-market-and-financial-advice

Smith, C. (2014, November 7). Shopping Cart Abandonment: Online Retailers' Biggest Headache Is Actually A Huge Opportunity. Retrieved December 8, 2014, from http://www.businessinsider.com/how-retailers-can-reduce-shopping-cart-abandonment-2014-9#ixzz3LM9h2I74

Google Rules The Web…. And, The World

Is there anyone that hasn’t heard of Google? It’s a noun, it’s a verb, and it’s a company that purchases other tech companies as it continually expands and changes the way we work, play and surf the web!  Consumers, business owners, marketers and many others rely on Google for analytics and detailed reports on what others are doing on their websites. With all of the information Google collects through millions of Google Analytics, Gmail, Google + accounts, it’s hard not to think about where it goes and what Google does with it.

Popular blog site Mashable created an interesting piece titled “5 Things Google Does With Your Data” which can be viewed below:

Google is so concerned about “privacy” they have their own website named “Google Safety Center” where they detail the best way to keep your information safe. They offer everything from password protection hints to security tips to keep your children safe on the web (Google Safety Center, 2014).  If Google puts this much emphasis on personal data, you would hope the company feels the same way about confidential corporate data. In 2013 it was reported that 63% of Fortune 500 websites now use Google Analytics (Farina, 2013).

According to Google’s Analytics’ website, Google protects the confidentiality of your company data in several ways:

•   Google Analytics customers are prohibited from sending personal information to Google-
The Google Analytics terms of service, which all Google Analytics customers must adhere to, prohibits sending personally identifiable information (PII) to Google Analytics. PII includes any data that can be used by Google to identify an individual, including (but not limited to) names, email addresses, or billing information.

•   Data cannot be shared without consent-
Google Analytics data may not be shared without customer consent, except under certain limited circumstances, such as when required by law.

Google Analytics continues to invest in security-
Security-dedicated engineering teams at Google guard against external threats to data. Internal access to data (e.g., by employees) is regulated and subject to the Employee Access Controls and Procedures. (Google Data Confidentiality, 2014).

These are just a few of the ways Google says they protect data stored in their Analytics platform.

With privacy on the minds of many of us today, Google has a responsibility to protect its user’s information. With services that range from video streaming to in-home monitoring, Google has placed itself at the center of our lives; with that comes a responsibility.  Trusting the company with our contact information and credit card is one thing, but trusting the company with 100% control of functions in our home is another. With Google’s acquisition of “Nest”, the company has shown that it is ready to move closer to making our life fully connected from our job to our mobile devices, and finally to our home.  According to an article in the Wall Street Journal, this deal would be Google's second largest, behind its 2012 acquisition of cellphone maker Motorola Mobility, and marks another expansion of the company's ambitions beyond its search advertising business, from robots to self-driving cars (Wakabayashi, Winkler, 2014). Google’s new acquisition of Nest branches out to include products called “drop cameras” that allow us to monitor the inside of our home while away on vacation. Some other products include thermostats that can be completely controlled by a smartphone from anywhere.  So what does this mean for consumers? The convenience of controlling a home from anywhere comes with a price. Google will technically have access to a wealth of data about what goes on in our homes (Chiapetta, 2014).  Forbes contributor Marco Chiapetta posed this example: If you own a PC and use Google for search (or use Chrome as your browser, GMAIL, etc.), and also own an Android-based device, a Nest product, and a Dropcam, the data collected by all of these pieces of technology can reveal virtually everything about you. Google would know what sites you visit and what you’ve searched for, where you are at any given time (assuming you’re carrying your smartphone), your contacts, Wi-Fi passwords, the temperature you like to keep in your house, and the list goes on and on. Google could theoretically even listen in on activities in your home, not to mention check out video feeds at will. If you’ve also got a few Dropcam Tabs installed, they’d even be able to tell when certain doors and widows are opened, or where you’ve stashed something (Chiapetta, 2014).  This is not something consumers should take lightly. Personally, I don’t think I would trust Google with such sensitive information. In the meantime, I’ll stick with my traditional thermostat and trusty guard dog Riley!

Google’s data collection in many ways is a necessary evil.  Without many of Google’s tools, especially products like G-mail, Google Analytics, and YouTube, we would be missing out on some spectacular products that help make our lives better and make sharing information via the Internet easier for individuals and businesses alike. Other products like Nest, Google Glass, and Google’s investments into self-driving cars seem a bit more intrusive on our privacy and raise concerns for me as a marketer and a consumer.  Although I believe Google truly has the public’s best interest in mind, their technology comes at a price.  As products evolve, consumers will need to decide for themselves how far is too far when it comes to the trade offs of Google Product vs. Privacy.  At what point is allowing Google to take pictures in your home not worth the “technology” and “perks” that come with specific products and services.  Although I am a “millennial”, my co-workers often joke that I’m an old soul. I respect my privacy and would never allow a Google/Nest Product to monitor my home, however, I am willing to share my Google+ profile and continuously use Google Analytics and G-mail. 

Just by typing the words, “Google’s Privacy Issues”, a variety of articles appear from major publications like The Wall Street Journal, Forbes, BusinessWeek, Marketwatch, Huffington Post, etc.  In 2013 The New York Times reported on a court case against Google that was given permission to proceed regarding privacy issues surrounding Google’s Street Car used to take pictures of homes and streets to publish on Google Maps (Streitfeld, 2013).   This is just proof that the topic of privacy is indeed a hot topic, and consumers are genuinely worried.  Even as technology evolves, there is a human breaking point that we simply cannot ignore.  Google must recognize the boundaries and respect those boundaries while also providing products and services that protect personal and confidential information. 

This is a topic that will continue to evolve and be argued many times over as Google grows and wi-fi and mobile technology evolves.  How much are you willing to share with Google?

References:

Analytics-Data Confidentiality. (2014, January 1). Retrieved December 1, 2014, from http://www.google.com/analytics/learn/privacy.html?rd=1

Chiappetta, M. (2014, June 23). Google Nest Labs' Acquisition Of Dropcam Scares The Heck Out Of Me. Retrieved December 1, 2014, from http://www.forbes.com/sites/marcochiappetta/2014/06/23/google-nest-labs-acquisition-of-dropcam-scares-the-heck-out-of-me/

Erickson, C. (2012, March 1). Google Privacy: 5 Things the Tech Giant Does With Your Data. Retrieved December 1, 2014, from http://mashable.com/2012/03/01/google-privacy-data-policy/

Farina, C. (2013, October 21). Google Analytics Solidifies Lead in Fortune 500 Adoption in 2013 « E-Nor Blog – Marketing Optimization and Google Analytics. Retrieved December 1, 2014, from http://www.e-nor.com/blog/google-analytics/google-analytics-solidifies-lead-in-fortune-500-adoption-in-2013

Rosenfeld, S. (2014, February 5). 4 ways Google is destroying privacy and collecting your data. Retrieved December 1, 2014, from http://www.salon.com/2014/02/05/4_ways_google_is_destroying_privacy_and_collecting_your_d

Safety Center – Google. (2014, January 1). Retrieved December 1, 2014, from http://www.google.com/safetycenter/

Streitfeld, D. (2013, September 10). Court Says Privacy Case Can Proceed vs. Google. Retrieved December 1, 2014, from http://www.nytimes.com/2013/09/11/technology/court-says-privacy-case-can-proceed-vs-google.html?_r=0

Winkler, R., & Wakabayashi, D. (2014, January 13). Google to Buy Nest Labs for $3.2 Billion. Retrieved December 2, 2014, from http://online.wsj.com/articles/SB10001424052702303595404579318952802236612

Making Web Metrics Decisions: KISSmetrics or Google Analytics?

Any beginner in the world of web analytics will tell you just how exciting and confusing it can be to choose the right tool that fits your business. With dozens of options out there, how do we really know if we’re choosing the right one?  Many of us are drawn to the light of Google. Why? Well; because it’s GOOGLE and anyone who practically re-engineered the web and how people around the world search for information ought to know a thing or two about how I can measure and analyze my company’s website. Although Google Analytics is a fascinating, and very powerful tool for web designers, marketers and IT professionals, there are still some other pretty powerful tools to explore.  This week, I’ve decided to take a deeper look into KISSmetrics.

 

            The first thing you will notice when you visit KISSmetric’s website is the phrase “Google Analytics tells you what’s happening. KISSmetrics tells you who’s doing it.” (Kissmetrics.com, 2014). This is a powerful statement that gains my attention as a marketer.  According to their website, KISSmetrics is a person-based analytics product that helps you identify, understand, and improve the metrics that drive your online business. KISSmetrics make it simple to get the information you need to make better product and marketing decisions. The company claims that they strive to make both installation and reporting as simple as possible (KISSmetrics Overview, 2014).  Some of the additional benefits of this company include enhanced tracking that goes beyond simply measuring pageviews or isolated events. KISSmetrics claims to track every single time a visitor comes to your website, even prior to their signing up.  The company is also known for its simple and quick reporting (KISSmetrics Overview, 2014).  Digging a little bit deeper, it is clear that KISSmetrics provides some additional insight into customer behavior that Google Analytics does not.

For example, one of the biggest differences between the tools is how they measure people.  According to a blog post written by KISSmetrics, “When a person visits your website for the first time, both KISSmetrics and Google Analytics assign an anonymous ID to that person.  For Google Analytics, the visit and registration must take place in the same visit session. If a person visits your website, leaves, and then comes back 10 days later and registers, only the last session is tied to the user ID. The first session is lost. Google Analytics connects data from only the session in which the user was identified. The only way around this is to find a way to identify people during as many sessions as possible. With KISSmetrics, all data from a person’s previous sessions is assigned to an alias.” (“What is the difference”, 2014)

As more of us are viewing websites on our tablets, phones, and mobile devices, it is important for marketers to also understand web analytics as it relates to mobile.  KISSmetrics outlines a common example again in their blog post that demonstrates some of the key attributes of their tools versus that of Google Analytics. Here is their example:

1) Anna registers on your site from her desktop.

2) A week later, she visits your site on her iPad but doesn’t log in.

3) Later that day, she visits your site again, this time logging in with her iPad.

With KISSmetrics, all the data from her desktop gets assigned to her alias once she registers. When she visits on her iPad, KISSmetrics assigns her a new anonymous ID. KISSmetrics doesn’t know this visitor is Anna until she logs in on her iPad. Once she logs in, all the sessions from her iPad are tied back to the ID she originally created when she registered on her desktop.

Anna registered on her first visit, so the activity from that session gets tied to her newly registered User ID. Since Anna’s second visit was on a new device and she didn’t log in, that data gets lost.  All her sessions going forward (on the same device) will be correctly assigned to her. (“What is the difference”, 2014)

This example shows just how intuitive KISSmetric’s data tracking is compared to Google Analytics, which connects data only from the session where the user was verified.

Strength Comparison: Who Does it Better?

 Google Analytics Vs. KISSmetrics

Use	Google Analytics	KISSmetrics
Tracking Visitors/Visits	✔
Bounce Rate	✔
Time on Page	✔
Exits	✔
Funnels		✔
Conversions Tracking	*Must set up Goals	*Must Set up Funnel
A/B Testing	*Can be done with separate URLs	Slightly easier with KM✔
Cohort Reports		✔

What happens when you combine KISSmetrics with Google Analytics?

According to some, this is the very best option. Although many of us have tight budgets, there are those fortunate enough to have used both Google Analytics and KISSmetrics together to strengthen the power of their data and get an even better insight into the customers who visit their websites.  According to the famous “Dummies.com” Google Analytics is one of many services that KISSmetrics works well with via API integration, and the setup is simple (Poston, n.d).  

KISSmetrics has many “out of the box” tools, while Google Analtyics’s tools typically require some expertise to use. Google Analytics can still provide much of the same data with some research and additional GA insights and know-how. 

Some of the Pros and Cons to Google Analytics are outlined below. It is important to note that with Google Analytics, visits to your site that don't execute the JavaScript file won't get counted. If the code doesn't run, then __utm.gif never gets requested from the GA servers and Google Analytics will never know about the visit. Likewise, if you take the code off your site or misconfigure it so that it's not working properly, the visits during that period won't be counted (ActualMetrics Blog, 204). Also, if a visitor deletes the Google Analytics cookies, they will be seen as a new visitor in the next visit, and all information from their previous visits will be lost.  This is one of the setbacks for marketers who depend on the GA tool for customer data.  To those of your who are new to using Google Analytics, it is also important to note that GA data is processed remotely. Once the data is in the account, mistakes in the historical data cannot be reprocessed.  Some experts recommend creating a duplicate profile to use as a sandbox so that you can test filters before you apply them to your production profile (ActualMetrics Blog, 2014).   Google Analytics is a tool that goes beyond simply tracking visitors to your site; it also allows you to create specific campaigns, goals, funnels, and reports that builds actionable data-sets and provides key insight into otherwise unclear data (Edelbrock, nd). 

 References:

Edelbrock, K. (n.d.). 6 Powerful Google Analytics Features. Retrieved November 23, 2014, from http://www.hongkiat.com/blog/google-analytics-why-you-probably-dont-need-the-rest/

Google Analytics tells you what's happening. KISSmetrics tells you who's doing it. (2014, January 1). Retrieved November 23, 2014, from https://www.kissmetrics.com

KISSmetrics. (2014, January 1). Retrieved November 23, 2014, from http://support.kissmetrics.com/getting-started/overview.html#how-is-kissmetrics-different-from-other-analytics-solutions

Poston, L. (n.d.). How to Combine KISSmetrics with Google Analytics. Retrieved November 23, 2014, from http://www.dummies.com/how-to/content/how-to-combine-kissmetrics-with-google-analytics.html

Sparks, C. (2014, March 11). 10 Great Social and Web Analytics Tools - Search Engine Journal. Retrieved November 23, 2014, from http://www.searchenginejournal.com/10-great-social-web-analytics-tools/90629/

What is the Difference Between Google Analytics and KISSmetrics? (n.d.). Retrieved November 23, 2014, from https://blog.kissmetrics.com/google-analytics-and-kissmetrics/