According to comScore 63% of the Online visitors convert Offline, and this figure reaches a staggering 92% in the case of electronic goods purchased. This finding could plausibly explain the universal question that all webmasters seek “Was the website instrumental in converting the visitor to a client?”. Offline conversion tracking helps to find an answer to this query. This also helps in arriving at a more meaningful web analysis, for further insight into the efficacy of the Online Marketing campaign.

In the following paragraphs, we will discuss the importance of Offline Conversion tracking and the methods to carry it out.

Businesses like eBay, Amazon, Dell etc. purely rely on Online marketing because they are conspicuously absent from the Offline world. Online metrics are appropriate for pure plays like them. However, businesses having multi channel presence only get a myopic view of the entire picture by using Online metrics. According to James Lamberti, Vice President (Marketing Solutions), comScore "Web-only metrics such as click-through rates and online conversions don't provide a full picture of search campaigns. The ROI being realized here is significantly higher than the analytics packages can pick up."

Businesses operating in multiple channels cannot ignore Offline conversion tracking. Measuring Offline conversion will provide a holistic view and help gauge the effectiveness of cross channel marketing efforts. Measuring Online influenced Offline sales thus command significant attention and importance, as the Offline Conversions are a fallout of the Online marketing efforts.

Assessing the impact of Online marketing on Offline sales is important to understand the phenomena of delayed conversion. Statistics have proven beyond doubt that Online research fuels Offline sales. Recent studies and polls indicate that a sizable chunk of consumers consider Internet as a research tool because of the wealth of information it offers. However, a majority of them complete the buying process Offline.

A survey conducted by Yahoo! Search Marketing concluded that only 1% of conversions materialize Online, in the same session as the initial search. A meager 7% convert Online in a different session and a staggering 92% of conversions happen Offline (delayed conversion), either via phone or in a brick and mortar shop. Another study carried out by comScore projected that an astounding 63% of all shoppers completed their purchase Offline. The study further indicated that 56% of the purchases made Online were realized in subsequent sessions.

The figures mentioned above clearly demonstrate the need for measuring Offline conversions. This need is further compounded by the fact that lack of Offline conversion tracking would result in Online marketers ceding more than half of their return on investment (ROI). As a consequence, Online marketing campaigns could be under-budgeted due to faulty measurement of ROI. A grave error which would have serious repercussion.

The figures mentioned above clearly demonstrate the need for measuring Offline conversions. This need is further compounded by the fact that lack of Offline conversion tracking would result in Online marketers ceding more than half of their return on investment (ROI). As a consequence, Online marketing campaigns could be under-budgeted due to faulty measurement of ROI. A grave error which would have serious repercussion.

The necessity to measure the 'elusive' Offline conversion gains greater significance for big ticket items such as expensive or complicated products and professional services, which are characterized by long sales cycle. This inherent characteristic act as an embargo for the sales process to be completed Online. This is especially true for websites meant for lead generation, financial services, real estate, high end electronic products, etc. A holistic approach is needed to accomplish the goal of effectively measuring Offline conversions.

Comprehensive conversion tracking is difficult when customers convert Offline. While statistics don't clearly indicate that an Internet user's research on a site specifically result in Offline conversion at the same merchant's physical store, it happens nonetheless. According to John Miniati, Vice President, comScore “It's increasingly clear that consumers who search for products Online will often visit brick-and-mortar locations to complete their purchase.”

It's quite evident that Offline conversion tracking would help justify the expenditure for Online marketing of a website. The available tools for Offline conversion tracking may be chosen based on the available Marketing budget, and could vary from A/B Testing to a more complicated Customer Tagging. A few of these tools could be:

Unique pricing variation : Offering unique prices that relate to a particular Online campaign would act as a tracking code for customers converting Offline. This would help marketers asses the originating point of the sales cycle and thus optimize Online marketing campaigns accordingly.

Call tracking : Setting up distinct phone numbers for each referral source i.e websites, affiliates, Online marketing campaigns, etc. would help in segregating customers based on the number dialed by them to contact a business.

Reference codes : Generating unique reference codes which can be redeemed via phone or in store can provide an insight into the source, where the sales process was initiated and thus assist in allocating marketing budget based on performance of each source.

Customer Tagging : Tagging customers with unique IDs would help in correlating the Online behavior of a customer to an Offline purchase. This process can be implemented easily by merchants who have an existing loyalty program.

Order forms : Incorporating printable order form feature on the website, so that the customer can present the same at their nearby store, would verify the point of origin.

Coupons : Printable coupons with tracking code, to be presented at the store to redeem special offer or discounts, can pin point the referral and thus verify success of Online marketing campaigns.

Surveys : Conducting random surveys Online and at the point of sale to study the behavior and purchasing pattern of customers is another way of tracking Offline conversion. This anecdotal data would help in drawing the connection between Online and Offline channels.

A/B testing : Another way of Offline conversion tracking is, to study the impact of the Online marketing spend on sales in a designated geographic area, keeping other factors constant. This helps to draw a direct correlation between these two channels.

Correlating Online influence to Offline sales can be done in many more ways. Modern analytical and statistical tools incorporate features for tracking Online as well as Offline sales. This can further be integrated with CRM (like Salesforce) to gain a better understanding and facilitate the decision making process.

The percentage of customers who refer Online resources before making an Offline purchase will vary from one industry to another. Multi-channel merchants should study this interaction to judge the level of influence it has on their business.

The boundary between Online and Offline channel is beginning to fade as Internet is set to become (for many of us it already is) an integral part of our lives. The power of Search Engines and its influence on e-Commerce is showing distinct signs of spillage into the Offline world. Tracking conversions that are initiated Online but culminate Offline, thus becomes imperative.

Fusion marketers face the task of integrating their concerted marketing efforts to bridge the gap between Online and Offline marketing. Armed with fused analytics, a combination of relevant Online and Offline measurement tools and statistics, fusion marketers can extrapolate the Online-Offline conversion funnel. The aim is to gain competitive advantage by imparting enhanced customer experience, based on past behavior across the Online-Offline channel.

Offline conversion tracking, using the above mentioned tools purports to help identify the source of the sale, and help to evaluate the true ROI of the Online Marketing efforts. This tracking facilitates better informed marketing decisions.