GWC14: Jose Carlos Cortizo - "The reality of gamified loyalty in eCommerce"

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José Carlos Cortizo's presentation from his talk at Gamification World Congress 2014

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GWC14: Jose Carlos Cortizo - "The reality of gamified loyalty in eCommerce"

  1. 1. The Reality of Gamified Loyalty in eCommerce Smart eCommerce for Smart People José Carlos Cortizo - @josek_net Co-founder and CMO at @brainsins_en
  2. 2. #GWC14 - @josek_net eCommerce is a simple concept “You open up an online store and sell everywhere in the world”
  3. 3. #GWC14 - @josek_net But reality is always harder…
  4. 4. #GWC14 - @josek_net You need to invest in traffic acquisition
  5. 5. #GWC14 - @josek_net But if your product/service is not good enough you won’t sell
  6. 6. #GWC14 - @josek_net Sales = Traffic x Conversion x AOV x Recurrence Browse Shop Buy Engage Strangers Visitors Shoppers Buyers Customers
  7. 7. #GWC14 - @josek_net First eCommerce focuses on acquisition Browse Shop Buy Engage Strangers Visitors Shoppers Buyers Customers
  8. 8. #GWC14 - @josek_net After that, you need to focus on CRO (sales optimization) Browse Shop Buy Engage Strangers Visitors Shoppers Buyers Customers
  9. 9. #GWC14 - @josek_net And then on loyalty (or how to sell more times to the same customers) Browse Shop Buy Engage Strangers Visitors Shoppers Buyers Customers
  10. 10. #GWC14 - @josek_net Sales = Traffic x Conversion x AOV x Recurrence Browse Shop Buy Engage Strangers Visitors Shoppers Buyers Customers
  11. 11. #GWC14 - @josek_net CAC vs LTV => It’s going harder as the eCommerce market matures
  12. 12. #GWC14 - @josek_net Traffic and sales of recurring customers 0 12,5 25 37,5 50 Due to recurring customers (% over total) 47% 8% Traffic Sales Source: Adobe Digital Index Report
  13. 13. #GWC14 - @josek_net Just 1% of eCommerce websites have a loyalty program Source: Adobe Digital Index Report
  14. 14. #GWC14 - @josek_net Question and hypothesis Why don’t you focus on the best revenue source? ! ! ! Could gamification be an ally for eCommerce websites?
  15. 15. #GWC14 - @josek_net Just test the hypothesis… 2.552 users from US, UK, Canada, Spain, Mexico, Chile, Colombia, Brazil 300 eCommerce Managers (same countries) Analysis of behavioral data from 200 online stores (same countries)
  16. 16. #GWC14 - @josek_net So far… > 1.000 customers surveyed 32 eCommerce Manager surveyed Analysis of behavioral data from 5 (big) online stores
  17. 17. #GWC14 - @josek_net Let’s see some results
  18. 18. #GWC14 - @josek_net 52% of people buys in online stores recommended by their friends
  19. 19. #GWC14 - @josek_net 79% of users thinks it’s important that online stores offers a loyalty program
  20. 20. #GWC14 - @josek_net 74% of users belongs to a loyalty program. But only 30% belongs to a loyalty program of an online store Only 5% if we don’t take into account Amazon Prime
  21. 21. #GWC14 - @josek_net 64% of users prefer loyalty programs that connect several brands
  22. 22. #GWC14 - @josek_net Going further Ok, ok….but that’s only loyalty… What about gamification?
  23. 23. #GWC14 - @josek_net It’s not everywhere the same…
  24. 24. #GWC14 - @josek_net In Spain and LATAM 69% of users prefer a fun user experience => Make it fun! In US, UK and Canada, less than 25% => Make it transactional!
  25. 25. #GWC14 - @josek_net In all countries people understand PBL (if it helps users to get what they need)
  26. 26. #GWC14 - @josek_net In Spain and LATAM >72% of users liked Bonobos Scavenger Hunt; US, UK and Canada < 24%
  27. 27. #GWC14 - @josek_net In Spain and LATAM ~36% of users liked Gilt Noir; US, UK and Canada ~ 15%
  28. 28. #GWC14 - @josek_net In Spain and LATAM ~51% of users liked Best Buy’s presence on Cityville; US, UK and Canada ~ 17%
  29. 29. #GWC14 - @josek_net In Spain and LATAM ~73% of users liked Arby’s (SM participation); US, UK and Canada ~ 19%
  30. 30. #GWC14 - @josek_net Don’t try to engage everybody, just your target market From the other side (eCommerce Manager perspective)
  31. 31. #GWC14 - @josek_net What works to engage with your target market may make a bad impression to other users From the other side (eCommerce Manager perspective)
  32. 32. #GWC14 - @josek_net At the end of the day money is king: is the main reason for repeated purchases (67%) and 78% of users would buy in another online store if it’s cheaper From the other side (eCommerce Manager perspective)
  33. 33. #GWC14 - @josek_net But… …20% of the users can generate 80% of your revenues
  34. 34. #GWC14 - @josek_net Conclusion 1: Keep it simple
  35. 35. #GWC14 - @josek_net Conclusion 2: Different cultures, different experiences
  36. 36. #GWC14 - @josek_net Conclusion 3: You only need “a few” customers to make the difference (~10%)
  37. 37. #GWC14 - @josek_net Less than one month for the final report
  38. 38. @brainsins_en @josek_net josecarlos.cortizo@brainsins.com

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