Red Hot Penny 2015 Ecommerce Predictions

We’re welcoming the New Year with open arms and have some interesting predictions for you to consider implementing for 2015. We have touched upon trends and developments in social media, search marketing, the retail market and technology.


 1. Being visible on Facebook will cost more:

Unfortunately, even if you have thousands of followers on Facebook you can no longer assume that thousands of people will see your posts. Historically, Facebook’s algorithm limited the reach of posts to just 16% of brands’ fans. But a report published by researchers at PR firm Ogilvy earlier in 2014 showed that number has since declined to around 6% and may fall further. The papers author, Marshall Manson explained that: “Increasingly, Facebook is saying that you should assume a day will come when the organic reach is zero.”

The reason this has happened is due to the increase in the amount of content flooding users’ news streams. This means that it is less and less likely that your post will get shown. Another reason for this is that Facebook is encouraging companies to use its paid social ads, which can reach a much larger percentage of fans than free (organic) posts can. These posts show up directly in users’ news streams, not along the side of the page like traditional banner ads.

This means that for 2015 businesses will need to increase spend on social advertising, or companies will invest more time in other channels including Twitter and Instagram where paying isn’t as necessary yet. But don’t panic, if you don’t want to abandon Facebook just yet you can do the following: ensure paid advertising works for you by targeting your specific target audience; choosing to only be charged when a customer likes your Facebook page or when they convert through to your website; tailor your adverts so they suit your brand; appear at specific times of day when you know your customer is browsing.

Our Digital Marketing team have developed and executed paid social advertising for a range of clients who have experienced successes in their campaigns. If you want to learn more about what we can offer email us at hello@redhotpenny.com.


 2. Omni-channel Marketing is a key focus:

Through working with one of our clients, Larsson & Jennings, we have seen that more and more brands are increasing how many purchasing channels there are available to customers. Larsson & Jennings recently opened their first flagship store in London and two key goals for them was to increase footfall to the store and to capture data from the customers who visit. This is something we incorporated into their digital marketing strategy for 2015.

Customers no longer shop or make buying decisions through a traditional sales funnel. Nor do they make clear distinctions between offline and online channels. Researchers have noticed a clear tendency for people to shop across a multitude of channels, going backward and forward between brick-and-mortar stores, websites and apps. In the past, with cross-channel and multiple channel approaches, each channel a brand uses had its own identity. With an omni-channel approach the customer cannot see a difference between online and offline in terms of things such as product availability, pricing fluctuations and information available to them. This creates a truly seamless experience for the customer and has proven very popular. Customers are increasingly starting to care more about brands and experiences and not about the channel they are using. We expect more retailers will be enforcing an omni-channel approach for 2015.


 3. Attribution modelling will be bigger:

If you’re unaware of what attribution modelling is, here is a brief overview from our friends at Google: “An attribution model is the rule, or set of rules, that determines how credit for sales and conversions is assigned to touchpoints in conversion paths. For example, ‘Last Interaction’ attribution assigns 100% credit to the final touchpoint (i.e. clicks) that immediately precede sales or conversions. ‘First Interaction’ attribution assigns 100% credit to touchpoints that initiate conversion paths.”

To go even deeper into how attribution models work Google have also provided a more detailed example: “A customer finds your site by clicking one of your AdWords ads. They return one week later by clicking over from a social network. That same day, they come back a third time via one of your email campaigns, and a few hours later, they return again directly and makes a purchase.”

The image below displays the different attribution models so you can accurately measure your conversions:


Our very own Head of Digital Marketing, David Schulhof has added:

All the focus recently has been on mobile commerce but the jury is out as to whether mobile is driving conversions offline, online or just acting as a browsing aid. Attribution modelling will provide the big data that joins the dots.

It seems that analysing the user journey is a huge talking point in ecommerce and it isn’t something that is going away for 2015. Understanding the combination of events that influence your customers to engage in a desired behaviour (i.e. purchasing your products) allows you to stay ahead of the game.

We can help with anything relating to Google. If you’re looking for an agency to manage your all of this for you contact us on 0118 324 9000.


 4. Subscription based services will take off:

We’ve regularly seen brands reporting a huge growth in sales since introducing a Click-and-Collect service to allow their customers freedom to pick up their order in their own time. It’s a simple service that has been around for a while but companies including children’s toy store The Entertainer have seen the benefits recently.

The Entertainer recorded a jump in Christmas sales on the back of strong online growth since launching the service. The toy retailer increased like-for-like sales by 5.5% during the five weeks to December 27th. The Entertainer founder Gary Grant said: “The year more than ever we have seen an increase in the number of people shopping on our website and our new mobile site. We have managed to successfully drive customers to [the website] whilst also increasing footfall in-store through our 30-minute click-and-collect service, demonstrating that the website is an integral part of the experience but the high street still has a vital role to play.”

This proves that as long as you are making your customer’s lives easier and show you are willing to develop your online offering to suit them you’ll have success online. Another interesting option that is going to be popular in 2015 is a personalised subscription service. One influential retailer who has adopted the subscription service is Amazon. Their ‘Subscribe & Save’ option boasts saving you up to 15% when you sign up for automatic delivery on your most frequent items. This can include dog food, nappies, coffee, contact lenses and razor blades for shavers. All you need to do is select an eligible item, choose the quantity and delivery schedule (delivery every 1 month, 2 months, 6 months etc.) and you’re all done. There are even bonus features including the opportunity to cancel at any time and there are no upfront charges, you only pay when the order is processed.

With large brands offering services like subscriptions we predict many others will follow. Of course, this is not something clothing retailers or brands will take part in due to the fact that people do not require the same pair of jeans every month. But it looks like a subscription service could be the new thing to offer this year.


 5. The new ‘Selfie’ tool that will grab the market:

So we’ve all heard of the infamous ‘Selfie Sticks’ that exploded onto the market in 2014. It also seemed like all of our friends on Facebook got one for Christmas due to the fact that they are so affordable. But this year we predict the new tool for capturing selfies is the amazing ZANO drone which was shown at CES in Las Vegas. We know this isn’t exactly related to all businesses but we just thought this was too cool not to mention!



The ZANO Drone


Creator Ivan Reedman began breaking ground on autonomous, intelligent, swarming Nano UAV’s in 2010 with a 240mm x 240mm version. Ivan and his team of highly skilled engineers and developers at Torquing Group worked tirelessly to continue to reduce the size of this UAV technology, without impacting on its capabilities. The ZANO is now being marketed as a drone that can ‘take your selfies to new heights’.

The way the ZANO works is it connects directly to your smart device (iOS or Android) via onboard Wifi and enables you to instantly begin capturing and sharing moments and angles that have never been seen before. You can easily move the ZANO from left to right, closer or further away by tilting your connected smart device. It’s incredible technology that is sure to be popular with people who are travelling and what to capture moments during their trip and also people who are active on social media. This is a new way of sharing images and we have a feeling people are going to get very excited about it.

ZANO gained backing through the innovative crowd funding website Kickstarter and they received an overwhelming amount of pledges. They received an amazing £2,335,119 and their goal was only £125,000 so it shows people believe this is going to be the new big thing in personal image and video sharing on social media. The ZANO is available for pre-order on their website now and deliveries will start in July 2015.


Want more information on how you can make your online business a success in 2015? Give Red Hot Penny a call on 0118 324 9000 or email hello@redhotpenny.com to speak to an expert.

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