Assessing Online Marketing Channels And
How They Can Be Best Used
ALEX BONO
Quick Introductions
Alex Bono
Partner MKKO Ventures
▪ Founding team - Groupon, Spain
▪ Since moving back to Singapore, act...
Assessing Online Marketing Channels And How They
Can Be Best Used
ALEX BONO
Today…
▪ How can you grow revenue
▪ What types of channels are best for which kinds of context
▪ What percentage and rate ...
Today…
You will not get a solution to improve a
conversion rate
You will get parameters to start improving the
conversion ...
More people are purchasing online
Question: Which of the following have you done online in the past month? Purchased a pro...
What is a conversion rate?
CONVERSION
RATE
NUMBER OF GOAL
ACHIEVEMENTS=
VISITS/
ALEX BONO
Most common conversions
ALEX BONO
Source: Millward Brown Digital 2013 –
Conversion optimization Report
Conversion rate
ALEX BONO
▪ However in eCommerce, we focus on
LEADS
(signups)
SALES+
So, why is it critical to under the CR econo-system?
Conversion Rate 101:
Get more customers for “free”.
Create the moment...
So, why is it critical to under the CR econo-system?
Conversion Rate 101:
Develop an advantage over your competitors.
Help...
So, why is it critical to under the CR econo-system?
Conversion Rate 101:
Create better alignment.
Bring marketing, techno...
So, why is it critical to under the CR econo-system?
Conversion Rate 101:
It makes financial sense.
More revenue leads to ...
Why is it critical to under the CR econo-system?
ALEX BONO
PROFIT
OVERHEADS
COST OF SALES
AD COSTS
PROFIT
OVERHEADS
COST O...
So, why is it critical to under the CR econo-system?
Conversion Rate 101:
Paid advertising is expensive.
Reducing your spe...
So, why is it critical to under the CR econo-system?
Conversion Rate 101:
Be more customer centric.
Walk in the shoes of y...
So, why is it critical to under the CR econo-system?
Conversion Rate 101:
Attract the right affiliates and partners.
They ...
So, why is it critical to under the CR econo-system?
Conversion Rate 101:
Seal the ‘bucket’ leakages.
Once you’ve acquired...
Why is it critical to under the CR econo-system?
▪ Drive traffic from PPC(FaceBook and AdWords)
▪ How conversion rate affe...
Why is it critical to under the CR econo-system?
CR needs to be approached with a holistic, long term and strategic
point ...
Conversion rate is not an aim.
But a consequence.
#1
Your site needs a mission.
#2
How do people buy?
Case one
▪ Mums.sg: eCommerce site focused
in mums, kids and babies
▪ Very targeted audience
ALEX BONO
Example
▪ Let’s take a look at the journey of a new customer at
MUMS.SG. [29 year old, Jamie first time mum. During her fr...
How do people buy?
Nowadays, the customer journey is more complex. More sources
of information, more variety, more competi...
How do people buy?
ALEX BONO
Icons design: http://www.danilodemarco.com/pittogrammi
Awareness Consideration Purchase Prefe...
Channels or touch points?
Touchpoints are:
▪ Ways to which customers interact with us.
▪ They can either be direct, indire...
Agile commerce: from channels to touch points
ALEX BONO
What are the elements of a touch point?
▪ The person (who) (the interacting individuals, whether it’s with other persons o...
What is The customer journey?
▪ It is how we interact with the customer
▪ It is the before, during and after we get them t...
Why is managing touch points important?
▪ The consumer goes on a ‘customer journey’ as a result of trying
to get a smart d...
Understand the customer
journey to improve your
conversion rate.#3
Manage your touch points,
ensuring good experiences at
every turn will increase your
conversion rates.
#4
Number of sources used when making last purchase decision
ALEX BONO
People who searched online for last purchase by market %
ALEX BONO
Time to purchase - baby care online
ALEX BONO
We are spending more time on screens
ALEX BONO – alex@mkkoventures.com
Source: Google Research - The new multi screen worl...
We often move from one screen to another while shopping
ALEX BONO
Source: Google Research - The new multi screen world.
Un...
And take a multi-device patch to purchase
ALEX BONO
Source: Google Research - The new multi screen world.
Understanding cr...
Online shopping is a multi-screen activity
ALEX BONO
Purchase is not linear.
The decision making process
happens through different
channels and devices.
#5
Channels and medium
Channels to drive traffic (owned, paid and borrowed)
▪ Social: Facebook, twitter, pinterest, g+
▪ Cont...
Understanding key questions…and create your
framework
Which channels produce results and which only
traffic?
ALEX BONO
So…
Which channels do work alone and which
interact to convert?
ALEX BONO
So…
Which channels reduce the time to
purchase/convert?
ALEX BONO
So…
Which channels are enablers and which ones
are finishers?
ALEX BONO
So…
Which screens work better for the channel?
ALEX BONO
Remember…
Channels are a mean.
Touch points are interactions
▪ Factors such as:
▪ Relevance of the advertising
▪ Stage of ...
Invest to convert
ALEX BONO
Multichannel (funnel) conversion paths
ALEX BONO
Multichannel (funnel) conversion paths – Attribution
models
▪ Marketing channels do not work on isolation
▪ Assign convers...
Strategise. Plan how to use
channels as effective touch
point to engage customers#6
In site optimization is key to make channels effective
▪ Landing pages segmented by channel and device
▪ Visual experience...
In site optimization is key to make channels effective
ALEX BONO
RED BUTTON
Increased 21%
conversions
A Framework to improve conversion rates
▪ STRATEGIZE
▪ PLAN
▪ MEASURE
▪ ANALYZE
▪ TEST
▪ OPTIMIZE
ALEX BONO
Invest to convert
▪ Marketers investing 10-25% of their time in optimization have
higher conversion rates (>2%)
▪ Those in...
How to increase revenue 101
steps on how to increase revenue
1. maximize exisitig traffic
2. identify barriers and remove ...
Example
ALEX BONO
G+  2% up
3 steps signup  40% up
Price  15% up
Maybe later  10%
67% uplift in sign-ups
Example
ALEX BONO
Changing the incentive.
Conversion decreased 48%
Most popular optimization tactics
ALEX BONO
Source: Millward Brown Digital 2013 –
Conversion optimization Report
use more ...
Test and analyse (conversion flow)
▪ Analytics
▪ Experiments: A/B, MVT
▪ Behavioural tools (bounce exchange)
▪ Copywriting...
Have a framework to test
systematically.
#7
And you need technology to execute
▪ Testing, experiments and optimization (optimizely,
google…)
▪ Analytics (Kissmetrics,...
Test and analyze
ALEX BONO
▪ Some tools good to start with:
▪ Analytics/BI: Google Analytics, KissMetrics, Mixpanel,
segme...
Marketing, strategy and
technology need to all work
together.#8
Take aways
The only best practice “best practices” I would recommend to
optimize your conversion rate and your channels ef...
Take aways
Do one step at a time
Do what you understand first
ALEX BONO
Do not master channels.
Master Customer Journeys
#9
#1 Conversion rate is not an aim. But a consequence.
#2 Your site needs a mission.
#3 Understand the customer journey to i...
Thank you
Alex@mkkoventures.com
Twitter: @albono
Etail asia 2014 customer journey mkkoventures.com
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Assessing Online Marketing Channels And How They Can Be Best Used
How can you grow revenue
▪What types of channels are best for which kinds of context
▪What percentage and rate of conversion can you expect from individual channels
Customer journey
Conversion rate optimization

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Etail asia 2014 customer journey mkkoventures.com

  1. 1. Assessing Online Marketing Channels And How They Can Be Best Used ALEX BONO
  2. 2. Quick Introductions Alex Bono Partner MKKO Ventures ▪ Founding team - Groupon, Spain ▪ Since moving back to Singapore, actively involved in funding, growing and consulting in internet business in Southeast Asia. ▪ Currently growing mums.sg as COO– eCommerce focused in babies and mums ▪ Used to multiple hats: from financial planning, operations, tech, marketing… MKKO Ventures (consulting and execution) ▪ Consulting ▪ eCommerce ▪ Online marketing/Apps ▪ Growing startups ▪ Fund raising ALEX BONO
  3. 3. Assessing Online Marketing Channels And How They Can Be Best Used ALEX BONO
  4. 4. Today… ▪ How can you grow revenue ▪ What types of channels are best for which kinds of context ▪ What percentage and rate of conversion can you expect from individual channels ALEX BONO
  5. 5. Today… You will not get a solution to improve a conversion rate You will get parameters to start improving the conversion rates. ALEX BONO
  6. 6. More people are purchasing online Question: Which of the following have you done online in the past month? Purchased a product online (via any device) Source: GlobalWebIndex Q4 2013 /// Base: Global Internet Users aged 16-64 CN 382m KR 21m IN 84m SG 2m MY 7m PH 15m HK 2m TH 9m ID 32m ALEX BONO
  7. 7. What is a conversion rate? CONVERSION RATE NUMBER OF GOAL ACHIEVEMENTS= VISITS/ ALEX BONO
  8. 8. Most common conversions ALEX BONO Source: Millward Brown Digital 2013 – Conversion optimization Report
  9. 9. Conversion rate ALEX BONO ▪ However in eCommerce, we focus on LEADS (signups) SALES+
  10. 10. So, why is it critical to under the CR econo-system? Conversion Rate 101: Get more customers for “free”. Create the momentum allocating budget and resource to customer acquisition. ALEX BONO
  11. 11. So, why is it critical to under the CR econo-system? Conversion Rate 101: Develop an advantage over your competitors. Helps shape the mindset of always improving within the company. ALEX BONO
  12. 12. So, why is it critical to under the CR econo-system? Conversion Rate 101: Create better alignment. Bring marketing, technology and strategy together. ALEX BONO
  13. 13. So, why is it critical to under the CR econo-system? Conversion Rate 101: It makes financial sense. More revenue leads to profits. Increasing your conversion by 50% could impact profits by 500%. ALEX BONO
  14. 14. Why is it critical to under the CR econo-system? ALEX BONO PROFIT OVERHEADS COST OF SALES AD COSTS PROFIT OVERHEADS COST OF SALES AD COSTS Before After Revenue 50% increase in conversion rate
  15. 15. So, why is it critical to under the CR econo-system? Conversion Rate 101: Paid advertising is expensive. Reducing your spend on PPC means lowering CAC (Customer Acquisition Cost). ALEX BONO
  16. 16. So, why is it critical to under the CR econo-system? Conversion Rate 101: Be more customer centric. Walk in the shoes of your customers – learn from them and improve the overall experience. ALEX BONO
  17. 17. So, why is it critical to under the CR econo-system? Conversion Rate 101: Attract the right affiliates and partners. They can monetize better. ALEX BONO
  18. 18. So, why is it critical to under the CR econo-system? Conversion Rate 101: Seal the ‘bucket’ leakages. Once you’ve acquired the customer, it’s far easier to keep them happy than having to acquire a new one. ALEX BONO
  19. 19. Why is it critical to under the CR econo-system? ▪ Drive traffic from PPC(FaceBook and AdWords) ▪ How conversion rate affects CPA ALEX BONO Campaign Type Campaign Budget Landing Page Costs Media Spend Traffi c Conversion Rate New Customers CPA Without LP $10,000 - $10,000 10,00 0 2% (1) 200 $50 With LP $10,000 $1,000 $9,000 9,000 2.5% (2) 225 $44.4 4 With LP + Testing & Optimization $10,000 $2,000 $8,000 8,000 3% (3) 240 $41.6 7 1 Google 2 Omniture typical 25% increase in conversion 3 50% increase through testing
  20. 20. Why is it critical to under the CR econo-system? CR needs to be approached with a holistic, long term and strategic point of view ▪ It is about continuous improvement ▪ It is not a quick fix to boost sales (marketing growth hacks) ▪ Improving CR in e-commerce requires testing. Lots of it. ▪ It requires a method to test ▪ And identifying your overall aim ▪ Understanding how that aim fits your strategy? ...If you do not know your strategy…Do the basics first. REVIEW YOUR STRATEGY. ALEX BONO
  21. 21. Conversion rate is not an aim. But a consequence. #1
  22. 22. Your site needs a mission. #2
  23. 23. How do people buy?
  24. 24. Case one ▪ Mums.sg: eCommerce site focused in mums, kids and babies ▪ Very targeted audience ALEX BONO
  25. 25. Example ▪ Let’s take a look at the journey of a new customer at MUMS.SG. [29 year old, Jamie first time mum. During her free time at work and on the go, she tries to makes full use of it to purchase items for her baby.] ALEX BONO Awareness Consideration Purchase Preference Search Website Display Forums Social Comparison sites Website Email Online chat [customer service] Email Social Search STAGE CHANNELS
  26. 26. How do people buy? Nowadays, the customer journey is more complex. More sources of information, more variety, more competition, more choice… ALEX BONO
  27. 27. How do people buy? ALEX BONO Icons design: http://www.danilodemarco.com/pittogrammi Awareness Consideration Purchase Preference
  28. 28. Channels or touch points? Touchpoints are: ▪ Ways to which customers interact with us. ▪ They can either be direct, indirect and even invisible. ▪ Each of these contribute to a larger ecosystem. ALEX BONO Source: http://www.conversionation.net/2012/04/is-touchpoint-marketing-the-only-marketing-left/
  29. 29. Agile commerce: from channels to touch points ALEX BONO
  30. 30. What are the elements of a touch point? ▪ The person (who) (the interacting individuals, whether it’s with other persons or with social objects) ▪ the intention (why) (the purposes of the person, often several ones at the same time) ▪ the social objects (where) (such as content, where intent and interaction occur) ▪ the context (when) (such as the various stages in the life cycle, time and place) ALEX BONO Source: http://www.conversionation.net/2012/04/is-touchpoint-marketing-the-only-marketing-left/
  31. 31. What is The customer journey? ▪ It is how we interact with the customer ▪ It is the before, during and after we get them to visit our site (repeatedly and recommending to others). And getting a ‘YES’ (conversion) ALEX BONO
  32. 32. Why is managing touch points important? ▪ The consumer goes on a ‘customer journey’ as a result of trying to get a smart decisions on the purchases ▪ As they progress through the purchase funnel, experience at each touch point can have consequence to our outcomes ALEX BONO
  33. 33. Understand the customer journey to improve your conversion rate.#3
  34. 34. Manage your touch points, ensuring good experiences at every turn will increase your conversion rates. #4
  35. 35. Number of sources used when making last purchase decision ALEX BONO
  36. 36. People who searched online for last purchase by market % ALEX BONO
  37. 37. Time to purchase - baby care online ALEX BONO
  38. 38. We are spending more time on screens ALEX BONO – alex@mkkoventures.com Source: Google Research - The new multi screen world. Understanding cross-platform consumer behavior
  39. 39. We often move from one screen to another while shopping ALEX BONO Source: Google Research - The new multi screen world. Understanding cross-platform consumer behavior
  40. 40. And take a multi-device patch to purchase ALEX BONO Source: Google Research - The new multi screen world. Understanding cross-platform consumer behavior
  41. 41. Online shopping is a multi-screen activity ALEX BONO
  42. 42. Purchase is not linear. The decision making process happens through different channels and devices. #5
  43. 43. Channels and medium Channels to drive traffic (owned, paid and borrowed) ▪ Social: Facebook, twitter, pinterest, g+ ▪ Content marketing: blogs, reviews, forums … ▪ Search PPC: adwords, bing, yahoo ▪ Display networks: google, yahoo... ▪ Remarketing networks: FBX, google, AdRoll, Retargeter, Chango... ▪ Email marketing (+transactional mails) ▪ Apps as a channel ▪ Shopping channel management: groupon, ... ▪ Affiliates ▪ Online PR ▪ Partnerships (banks, credit cards, other sites) ▪ Video: YouTube (content) ▪ Offline link: QR promo codes ▪ Messaging apps / Third party apps ▪ Video games (game consoles) ALEX BONO ▪ Kiosks and ATM’s ▪ SMS Screens ▪ Smartphone ▪ Tablets (different sizes) ▪ Laptops/Desktops ▪ Interactive TV ▪ Smart watches (coming soon) Different ad platforms (channels) and devices deal with very different states of mind for the target audience!
  44. 44. Understanding key questions…and create your framework Which channels produce results and which only traffic? ALEX BONO
  45. 45. So… Which channels do work alone and which interact to convert? ALEX BONO
  46. 46. So… Which channels reduce the time to purchase/convert? ALEX BONO
  47. 47. So… Which channels are enablers and which ones are finishers? ALEX BONO
  48. 48. So… Which screens work better for the channel? ALEX BONO
  49. 49. Remember… Channels are a mean. Touch points are interactions ▪ Factors such as: ▪ Relevance of the advertising ▪ Stage of the customer journey ▪ Audience ▪ Targeting and segmentation ▪ Location ▪ Context Condition the effectiveness of the channel driving traffic ALEX BONO
  50. 50. Invest to convert ALEX BONO
  51. 51. Multichannel (funnel) conversion paths ALEX BONO
  52. 52. Multichannel (funnel) conversion paths – Attribution models ▪ Marketing channels do not work on isolation ▪ Assign conversion to the “last click” may be biasing the overall marketing efforts and the interaction of the channels ▪ Attribution models that can measure multichannel performance will get more relevant ALEX BONO
  53. 53. Strategise. Plan how to use channels as effective touch point to engage customers#6
  54. 54. In site optimization is key to make channels effective ▪ Landing pages segmented by channel and device ▪ Visual experience ▪ Usability ▪ Responsive or mobile site ▪ Navigation ▪ Speed ▪ Responsive marketing (bounce exchange) Are absolutely key to increase conversion rates and make touch points effective ALEX BONO
  55. 55. In site optimization is key to make channels effective ALEX BONO RED BUTTON Increased 21% conversions
  56. 56. A Framework to improve conversion rates ▪ STRATEGIZE ▪ PLAN ▪ MEASURE ▪ ANALYZE ▪ TEST ▪ OPTIMIZE ALEX BONO
  57. 57. Invest to convert ▪ Marketers investing 10-25% of their time in optimization have higher conversion rates (>2%) ▪ Those investing more than 5% of their budget on optimization tactics are more likely to have higher conversion rates >2% ALEX BONO
  58. 58. How to increase revenue 101 steps on how to increase revenue 1. maximize exisitig traffic 2. identify barriers and remove them 3. widenning the conversion funnel 4. reduce churn rate ALEX BONO
  59. 59. Example ALEX BONO G+  2% up 3 steps signup  40% up Price  15% up Maybe later  10% 67% uplift in sign-ups
  60. 60. Example ALEX BONO Changing the incentive. Conversion decreased 48%
  61. 61. Most popular optimization tactics ALEX BONO Source: Millward Brown Digital 2013 – Conversion optimization Report use more than four tactics. 27%
  62. 62. Test and analyse (conversion flow) ▪ Analytics ▪ Experiments: A/B, MVT ▪ Behavioural tools (bounce exchange) ▪ Copywriting ▪ Personalization tests ALEX BONO
  63. 63. Have a framework to test systematically. #7
  64. 64. And you need technology to execute ▪ Testing, experiments and optimization (optimizely, google…) ▪ Analytics (Kissmetrics, google analytics, comscore, quantcast…) ▪ BI (gooddata, Rjmetrics….) ▪ Sales enablement ▪ Email marketing (mailchimp, exact target…) ▪ Mobile marketing ▪ Social and search ads tech ▪ Remarketing tools ▪ Browsing behaviour (bounce exchange…) ALEX BONO
  65. 65. Test and analyze ALEX BONO ▪ Some tools good to start with: ▪ Analytics/BI: Google Analytics, KissMetrics, Mixpanel, segment.io, Custora, GoodData, Omniture, Clicky, RjMetrics ▪ Survey: Survey Monkey, Survey.io, PollDaddy ▪ User Testing: Crazy Egg, clicktale ▪ Experiments and Testing: Optimizely, Google experiments, Visual Web Optimizer
  66. 66. Marketing, strategy and technology need to all work together.#8
  67. 67. Take aways The only best practice “best practices” I would recommend to optimize your conversion rate and your channels efficiency would be to strategize, plan, test and analyse to master customer journeys. …listen to advises… but Every business is different ALEX BONO
  68. 68. Take aways Do one step at a time Do what you understand first ALEX BONO
  69. 69. Do not master channels. Master Customer Journeys #9
  70. 70. #1 Conversion rate is not an aim. But a consequence. #2 Your site needs a mission. #3 Understand the customer journey to improve your conversion rate. #4 Manage your touch points, ensuring good experiences at every turn will increase your conversion rates. #5 Purchase is not linear. The decision making process happens through different channels and devices. #6 Strategize. Plan how to use channels as effective touch point to engage customers #7 Have a framework to test systematically. #8 Marketing, strategy and technology need to all work together. #9 Do not master channels. Master Customer Journeys
  71. 71. Thank you Alex@mkkoventures.com Twitter: @albono

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