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The power of customer loyalty in performance marketing - Anthony Quinn
 

The power of customer loyalty in performance marketing - Anthony Quinn

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    The power of customer loyalty in performance marketing - Anthony Quinn The power of customer loyalty in performance marketing - Anthony Quinn Presentation Transcript

    • The Power of Customer Loyalty in Performance Marketing Hash Tag: #A4UT11 September 19th, 2011 Presented By: Anthony Quinn Director, Advertiser ServicesCopyright 2011 LinkShare Corporation. All rights reserved.
    • Agenda  Introduction  Evolution Of Consumer Behaviour  Who Are Consumers Loyal To And Why?  What Can Be Learned?Copyright 2011 LinkShare Corporation. All rights reserved. 2
    • Who am I?  Anthony Quinn, Director, Advertiser Services at LinkShare  Responsible for the effective management, development and growth of LinkShare’s managed affiliate programs  Over 11 years in online marketing  Previously worked advertiser side at GAME StoresCopyright 2011 LinkShare Corporation. All rights reserved. 3
    • LinkShare UK Network  Launched August 2006  Winner of ‘Most Improved Network’ at the 2011 a4u Awards  Over 250 Advertisers  Focus on Retail & Travel  Over 140,000 Quality Publishers  Dedicated Teams  Superior Client Service  Publisher Partnership SupportCopyright 2011 LinkShare Corporation. All rights reserved. 4
    • Definition of Loyalty in the context of this presentation  Loyalty of Customers towards the sites that they visit  Recognition & acknowledgement of the new behaviour of customersCopyright 2011 LinkShare Corporation. All rights reserved. 5
    • Hypothesis... Are consumers becoming more loyal to publisher sites than the advertisers? And if that is the case, how and why is this happening? How can we explain the shift?Copyright 2011 LinkShare Corporation. All rights reserved. 6
    • Let’s start with a brief history focusing on:  Consumer Evolution  Advertiser Evolution  Publisher EvolutionCopyright 2011 LinkShare Corporation. All rights reserved. 7
    •  Consumer Evolution  Advertiser Evolution  Publisher EvolutionCopyright 2011 LinkShare Corporation. All rights reserved. 8
    • Consumer Evolution  Offline  Online  Consumers becoming more savvy  Finding the information they want onlineCopyright 2011 LinkShare Corporation. All rights reserved. 9
    • Offline  OnlineCopyright 2011 LinkShare Corporation. All rights reserved. 10
    • Consumer Shift: Offline  Online  10% annual growth expected across Europe  Online retail will pass the €100bn mark in 2012Copyright 2011 LinkShare Corporation. All rights reserved. Source: Forrester Reseach – European Online Retail Forecast 2010 - 2015 11
    • Consumers becoming more savvyCopyright 2011 LinkShare Corporation. All rights reserved. 12
    • Consumer Shift: Consumers becoming more savvyCopyright 2011 LinkShare Corporation. All rights reserved. Source: LinkShare Trendwatch - 2009 13
    • Consumer Shift: Consumers becoming more savvy “With much less time to do a normal shop it’s much easier for me” “I find it easier to change between retailers and find the bargains Im looking for” “I like it because yousee a much wider choice and price of goods and spend no money on transport” “You’re able to compare products much more” Which of the following are reasons for why you prefer shopping online? Source: LinkShare Trendwatch - 2009Copyright 2011 LinkShare Corporation. All rights reserved. 14
    • Finding the information they want online 92% have more confidence in online information than salespeople 81% are doing online research “most of the time” before buying a product 73% conducting online product research several times a monthCopyright 2011 LinkShare Corporation. All rights reserved. Source: LinkShare Trendwatch - 2009 15
    • Finding the information they want online Source: LinkShare Trendwatch - 2009Copyright 2011 LinkShare Corporation. All rights reserved. 16
    • Are Consumers influenced by this information? Have you ever purchased something online that you would never previously thought of buying, because of a voucher or offer? 58.9% 60 41.1% 50 40 30 20 10 0 Yes No Source: LinkShare Information Shopper Research – August 2011Copyright 2011 LinkShare Corporation. All rights reserved. Source: LinkShare Information Shopper Research – August 2011 17
    •  Consumer Evolution  Advertiser Evolution  Publisher EvolutionCopyright 2011 LinkShare Corporation. All rights reserved. 18
    • Advertiser Evolution  Reacting to consumer behaviour. More and more shoppers are online  Interaction with customers  Improving the on-site customer experience through understanding customer needsCopyright 2011 LinkShare Corporation. All rights reserved. 19
    • Advertiser EvolutionCopyright 2011 LinkShare Corporation. All rights reserved. 20
    • Advertiser EvolutionCopyright 2011 LinkShare Corporation. All rights reserved. 21
    • Advertiser EvolutionCopyright 2011 LinkShare Corporation. All rights reserved. 22
    • Advertiser EvolutionCopyright 2011 LinkShare Corporation. All rights reserved. 23
    • Advertiser Evolution Ocado: ‘Virtual Shop Window’Copyright 2011 LinkShare Corporation. All rights reserved. 24
    •  Consumer Evolution  Advertiser Evolution  Publisher EvolutionCopyright 2011 LinkShare Corporation. All rights reserved. 25
    • Publisher Evolution  Publishers have themselves created opportunities in performance marketing New affiliate types: Reacting to consumer shift = • • • • Voucher Loyalty Editorial Blog Video All with 1 objective in mind > drive sales and custom for the advertiserCopyright 2011 LinkShare Corporation. All rights reserved. 26
    • Summary So Far… Consumer Evolution Who is best serving the Advertiser & Publisher needs of the consumer Evolution today?Copyright 2011 LinkShare Corporation. All rights reserved. 27
    • Who is best serving the needs of the consumer today:  Advertisers?  Management of CRM systems  Loyalty strategy – newsletters that feature rewards for loyalty  Advertiser sites as destination sites (video, interaction, consumer offers)  Is this working? Potentially no – but why?Copyright 2011 LinkShare Corporation. All rights reserved. 28
    • Who is best serving the needs of the consumer today:  Consumers today are time poor  However – Receiving more information than ever before from advertisers – For Example: Advertiser newsletters featuring offers and promotions:  Hotmail recently released a new way to organise inbox (classifying newsletters as Grey)  75% of the email messages reported as spam are really legitimate newsletters, offers, or notifications.Copyright 2011 LinkShare Corporation. All rights reserved. 29
    • Who is best serving the needs of the consumer today:  What about publishers? Are they best serving their purpose/shopping patterns/wants/needs? Potentially yes……..Copyright 2011 LinkShare Corporation. All rights reserved. 30
    • Who is best serving the needs of the consumer today: Is there a gap between the advertiser and the publisher serving the needs of the consumer journey? Example: multichannel experience…..Copyright 2011 LinkShare Corporation. All rights reserved. 31
    • Example of the gap: A consumer multichannel experience (69%) researched a product in a shop before buying. But 67% then turned online when it came time to purchase – in search of better prices * Publisher Site Advertiser Tracking for compensation / reporting *(Kantar Media Compete’s Online Shopper Intelligence report, 2011)Copyright 2011 LinkShare Corporation. All rights reserved. 32
    • Who is best serving the needs of the consumer today: Publishers provide value With clear intentions to return time and time again as part of their purchase journey.Copyright 2011 LinkShare Corporation. All rights reserved. 33
    • Who is best serving the needs of the consumer today:  Publishers are therefore now an integrated part of the consumers purchase journey  Cashback / Loyalty  Voucher  Community  Shopping comparison / personalisation  Review & Recommendations  How do they provide value?Copyright 2011 LinkShare Corporation. All rights reserved. 34
    • Who is best serving the needs of the consumer today: Price Comparison Get best deal Shopping Find right Comparison product easily Trustworthy Style Blog fashion advice Voucher Site Cost saving Who is the consumer naturally loyal to?Copyright 2011 LinkShare Corporation. All rights reserved. 35
    • Creating new opportunities in affiliate marketing Price Comparison Get best deal Shopping Find right Comparison product easily Trustworthy Style Blog fashion advice Voucher Site Cost saving Loyalty comes from the VALUE that they get from a siteCopyright 2011 LinkShare Corporation. All rights reserved. 36
    • Who is best serving the needs of the consumer today: Publishers provide value Let’s look at some examples…..Copyright 2011 LinkShare Corporation. All rights reserved. 37
    • Understand the value of the publisher - POLYVORE Traffic  10m Unique Visitors per month  2m Registered Users  140m Pageviews per month Social presence  100k posts to Twitter & Facebook  35m monthly impression on blogs Other  Authentic, Personal, User-Generated  Insight Loyalty • 12.4% of users visit 100+ times pcmCopyright 2011 LinkShare Corporation. All rights reserved. 38
    • Understand the value of the publisher - SHOPSTYLE Most popular fashion aggregator  High street and designer fashion  160+ retailers Traffic  1.1million unique visitors per month  High conversion rate and AOV Premium Exposure  E-shop algorithm  Sale alerts Social MediaCopyright 2011 LinkShare Corporation. All rights reserved. 39
    • Understand the value of the publisher – SHOP IT TO ME Personalisation Technology  Free, trusted online personal shopper  Aggregated newsletters sent with matches according to your personal preferences Easy shopping solution  Scour the web every day to find the best prices on the items you’ve selected  Offers from over 200 retailers  Aggregated daily email Traffic  Over 3 million subscribers  Over 2 billion product recommendations per monthCopyright 2011 LinkShare Corporation. All rights reserved. 40
    • Understand the value of the publisher – QUIDCOCopyright 2011 LinkShare Corporation. All rights reserved. 41
    • Publishers building a legion of loyal fans  Top publisher sites now have power & are shopping destinations in their own right:  More traffic than advertisers  Extensive email databases  Community  engaged members  Use distribution channels – social media, direct mail etc.  Committed to growth / flexible to changeCopyright 2011 LinkShare Corporation. All rights reserved. 42
    • Understand the value of the publisher  Assess the value of an publisher according to your own metrics:  Average Order Values  New vs. Existing Customers  Lifetime valueCopyright 2011 LinkShare Corporation. All rights reserved. 43
    • Understand the value of the publisher Average Order Values  Customers loyal to voucher/coupon sites expect to spend 16% 16% more, on average, than the typical online shopper.*  They make 18% more purchases online than the average online 18% shopper.* *Source: A commissioned study conducted by Forrester Consulting on behalf of WhaleShark Media August 2011Copyright 2011 LinkShare Corporation. All rights reserved. 44
    • Understand the value of the publisher Average Order Values Increased Increased Increased AOV by 31%* AOV by 25%* AOV by 19%* Cashback Site Voucher Site Employee Mall *Compared to the Exclusive Exclusive Exclusive same period the Free Delivery £10 off £100+ Free Delivery previous weekCopyright 2011 LinkShare Corporation. All rights reserved. 45
    • Understand the value of the publisher New vs Existing Customers Increased by Increased by Increased by 27%* 17%* 14%* Voucher Site Cashback Voucher Site *Compared to the Exclusive Exclusive Exclusive same period the Free Delivery Free Delivery Free Delivery previous weekCopyright 2011 LinkShare Corporation. All rights reserved. 46
    • Understand the value of the publisher Lifetime Value  Visitors to coupon/voucher websites are an especially valuable segment of shoppers.  Consumers who redeemed more than six coupons/vouchers in the past 12 months, spent 80% more per year than light users  This equates to 32% more than the mean spend of all US coupon/voucher users.* *Source: A commissioned study conducted by Forrester Consulting on behalf of WhaleShark Media August 2011Copyright 2011 LinkShare Corporation. All rights reserved. 47
    • Understand the value of the publisher Lifetime Value “We know customers are loyal to [coupon aggregator] sites. We also know it drives a large number of new customers, ranging from 18%-25% of our net new customers.” (Sr. Online Manager, large apparel and home furnishing retailer)* *Source: A commissioned study conducted by Forrester Consulting on behalf of WhaleShark Media August 2011Copyright 2011 LinkShare Corporation. All rights reserved. 48
    • Publishers are providing consumers with the right information Information = Value = LoyaltyCopyright 2011 LinkShare Corporation. All rights reserved. 49
    • Summary  Consumer shopping behaviour has evolved  Publishers add value to a consumer journey  Consumers can be more loyal to the publisher than the advertiserCopyright 2011 LinkShare Corporation. All rights reserved. 50
    • Some Key Takeaways  Work closely with the publishers to help them understand your objectives for the program and strategise accordingly  Performance marketing is a proven cost effective channel for driving new customers  However, you should utilise the channel for maintaining your existing customers (and reward them for their loyalty to the advertiser)  Would the customer have shopped with the advertiser anyway?  Perhaps notCopyright 2011 LinkShare Corporation. All rights reserved. 51
    • Thank You! Presented By: Anthony Quinn Director, Advertiser Services anthony.quinn@linkshare.comCopyright 2011 LinkShare Corporation. All rights reserved. 52