GameStop Updates its Analytics Game

Deena M. Amato-McCoy

2/28/2017

GameStop’s shoppers are becoming increasingly digital — an evolution that is also narrowing the window between when shoppers purchase merchandise and when they expect to receive it.

Eager to stay engaged with shoppers within this shrinking post-purchase gap, GameStop launched a new e-commerce strategy just prior to its holiday rush focused on driving post-purchase revenue and creating more satisfied customers during this critical selling period.

GameStop’s director of multichannel, Bill Graham shared his thoughts about the initiative — and expectations — with Chain Store Age.

What is GameStop doing to improve the post-purchase experience for customers?

Our strategy, which we call the “new moment of truth,” focuses on the shopping experience after shoppers click the submit button and their transaction is on the way. The post-purchase experience is just as important as the discovery and purchase portions of the journey.

For example, more than half our customers will track their package to find information about delivery and more. It’s up to us to streamline how that information is presented and to continue engaging with the customer wherever they are post-purchase. That’s why we created a branded custom tracking page that keeps shoppers in our ecosystem versus directing shoppers to third-party sites for package information.

The page, which we created with the help of our partner Narvar, lets shoppers track deliveries, view product recommendations and link back to our site to find trade-in values for their previously played games, consoles and electronics. These pages are all delivered responsively, so they can be viewed on any computer or mobile device.

How do you accurately measure customer usage?

Our Narvar product has given us a significant amount of post-purchase analytics we can learn from and act on. We analyzed activity to see what potential improvements we need to make in terms of packages arriving on time, proactively working to solve any carrier hiccups, and allowing guests to sign up for package alerts — another new service launched in November.

This is an artificial intelligence chatbot on Facebook Messenger, also through Narvar, as well as our traditional SMS/ text message package alerting. Shoppers can opt in for these services for free to receive messages about their online orders. Both messaging options have about a 20% opt-in rate, with 25% of shoppers using Messenger and 75% using SMS.

Can you share some results?

At least 30% of folks hitting our branded tracking experience are clicking back through to our website.

These shoppers are also converting back to shoppers at a competitive rate. The experience shows customers more items they may want or may have missed the first time around.

Think Locally

GameStop may be a global company, but access to customer-specific data enables it to “act locally,” especially when rolling out new programs.

With 50 million members enrolled in its PowerUp Rewards loyalty program across 13 countries, the gaming retailer relies on this “customer data to learn about shoppers, manage operations differently and even transform our business,” said Mike Mauler, executive VP for the chain’s GameStop International division, at the annual NRF convention and expo in New York City.

GameStop tapped PowerUp when evaluating the value of its “Loot” category — licensed, collectible merchandise that fills 2,000-sq.-ft. sections within its stores. The PowerUp data revealed the category was a $500 million business in its Australia locations — a factor that pushed the chain to test expanded sections.

“We increased these sections to 8,000 sq. ft. in Australian stores, a move that attracted 70% new customers,” Mauler said.

The category is on pace to hit $1 billion in sales by 2019. If this trend continues, Mauler said GameStop would expand sections across other geographies.

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