Under Armour:
Being from Baltimore, Under Armour
is one of the success stories that everyone loves to tout. The sports apparel
company is the definition of superior with high-quality products and a stellar
marketing team. Pinned up against sporting good giants Nike and Adidas, Under
Armour aims to drive online traffic to their websites that are aimed at a
variety of audiences - both niche and mass pleasing. Despite the harsh
competition, Under Armour has continued to grow, with last quarter marking the
fourth consecutive quarter of over 30% growth (Symington, 2014).
Website Success:
To achieve such great e-commerce
success, Under Armour uses Adobe’s Online Marketing Suite (Adobe, 2014). This
system, as detailed in my blog post two weeks ago, is a very high-powered
system that “helps you to uncover business opportunities and successes by
turning customer interaction into actionable insights. With the market-leading
solution, you can better understand the entire journey (Adobe, 2013).”
Under Armour’s Manager of Web
Analytics & Optimization, Beau Kemeys cited the ability to look beyond page
visits, orders, and revenues per product and evaluate how to leverage web
analytics and optimization solutions to modify e-mail marketing, web content,
and purchase suggestions (Adobe, 2014).
Under Armour has completely
optimized the website based on data provided by Adobe’s Marketing Suite. Items are categorized well, which helps
visitors to easily navigate to the pages and products they’re interested in
viewing. In addition to easy navigation, visitors are shown products that other
people have viewed with similar browsing habits, or products with similar
features. The thinking behind this is that if a visitor is potentially
interested in one product, they may also be interested in something similar, or
something that another user with similar tastes found worthy of purchase.
One of the benefits of the Adobe
Marketing Suite is that it allows the webmaster to see and analyze how
customers arrived to the site, their online interactions, product searches,
content viewed, and the steps leading up to purchase. With this information e-commerce
retailers can better anticipate the habits of visitors, their interests, and
where in the process they lose (or gain) a sale.
Under Armour’s Kemey said that by
using this tool, his team was able to see that despite certain products seeing
lower-traffic on their standalone pages, they saw a large spike in purchased
when listed on a higher-profile area of the site (Adobe, 2014). Unexpected victories
can become apparent when viewing website data with such precision.
Another tool that Under Armour uses
in addition to the Adobe Marketing Suite to monitor engagemtn, called Needle,
is a social selling platform that allows existing fans to answer customer
questions directly on the company’s website (Needle, n.d.). Other brands that
use Needle include Coach, Nikon, Dick’s Sporting Goods, and Ocerstock.com.
According to Needle’s website, the platform can deliver real-time results with
conversion increases of 10% (Needle, n.d.).
In a presentation that Under
Armour’s Manager of Web Analytics & Optimization gave at Adobe Summit in
2012, he said that Under Armour sees a 27% conversion rate from customers who
talked one-on-one with a Needle user, compared to typical single digit
conversions (Bell, 2012).
Social Integration and Growth:
Last year, Under Armour launched an
18-day holiday promotion that included a web overhaul, Google AdWord campaign,
and social media (Blau, 2013).
Under Armour
used GoogleAds, targeting interests, category and keyword targeting of
potential online customers, leading them to the website according to Jason
LaRose, Under Armour’s Senior Vice President of e-commerce. All social media
ads were tailored based on the traffic to the e-commerce site for Black Friday
and Cyber Monday (Blau, 2013). Since operating this way, LaRose acknowledged
that social engagement with ads has doubled.
App Integration:
When Under Armour launched the “I
WILL WHAT I WANT” campaign, the company saw a huge spike in traffic to the e-commerce
site. Most of these visitors were women and 70% of them were new to the Under
Armour brand (Symington, 2014). Under Armour saw engagement skyrocket, which
was evident through over 350,000 downloads of the “I WILL WHAT I WANT” app
(Symington, 2014). The fact that Under Armour was able to get 350,000
individuals to download an app based on a single commercial is astounding. As
long as these users continue to have the app, Under Armour has access to them
through email, push reminders, and more.
While the 350,000 downloads was
impressive, that number almost pales to the 30 million registered users of the
app (Barker, 2014). Under Armour collects data through their app, such as how
users work out, where they do it, and for how long (Cornstock, 2014). The app
collects data profiles so the company can differentiate between exercise
enthusiasts by looking at the data sent back from users. Under Armour can
analyze the time of day, frequency and distance, they can distinguish between
groups of people, and gain more insight into their users’ habits.
Recommended Tools and Tactics:
It’s clear that Under Armour knows
what they’re doing with their e-commerce team. Sales are up, conversions are
great, and website and app traffic continues to grow exponentially. Looking at
their website, it’s difficult to imagine it any other way. Below are
hypothetical goals that Under Armour should focus on next year.
Goal: Track abandoned shopping cart
rate from new site visitors new to the Under Armour brand.
With the I WILL WHAT I WANT app,
Under Armour has the opportunity to continue a meaningful relationship with an
entirely new market. The tracking can be done using Adobe’s Marketing Suite to
automatically generate marketing emails to customers who are logged in to the
site. If Under Armour were to tie the app to their website, they would have the
personal exercising habits of users in addition to their potential shopping
habits.
References:
Adobe. (2013, October). Adobe.com.
“Adobe Analytics Premium.” Retrieved from, http://wwwimages.adobe.com/content/dam/Adobe/en/solutions/digital-marketing/digital-analytics/pdfs/solution-overview-analytics-premium-ue.pdf.
Adobe. (2014). Adobe Online Marketing Suite Success Stories. “Under Armour.”
Retrieved from, http://sjstransky.writerfolio.com/attachments/26691.pdf.
Barker, J. (2014, October 24).
Baltimore Sun. “Fitness Technology is personal to Under Armour’s Plank.”
Retrieved from, http://www.baltimoresun.com/business/under-armour-blog/bs-bz-plank-health-technology-20141024-story.html#page=1.
Bell, B. (2012, March 30). Brooksbell.com. “How to Life Conversion
Rates with Social Proof.” Retrieved from, http://www.brooksbell.com/blog/how-to-lift-conversion-rates-with-social-proof/.
Blau, M. (2013, December 14). Mashable.com. “Under Armour Used
Real-Time Data, Display Ads to Drive Holiday Sales.” Retrieved from, http://mashable.com/2013/12/14/under-armour-black-friday-metrics/.
Cornstock,
J. (2014, May 15). Mobihealthnews.com. “How
Under ARmour will use MapMyFitness data to sell apparel.” Retrieved from, http://mobihealthnews.com/33158/how-under-armour-will-use-mapmyfitness-data-to-sell-apparel/.
Needle.
(n.d.). Needle.com. “Needle.”
Retrieved from, https://www.needle.com.
Symington,
S. (2014, October 29). Fool.com. “5
Things Under Armour’s Management Wants You to Know.” Retrieved from, http://www.fool.com/investing/general/2014/10/29/5-things-under-armour-incs-management-wants-you-to.aspx.