Jetlore Founder and CEO, Eldar Sadikov, delivers the opening remarks for the 2015 'Growth in Retail' Session at #EtailEast.

1. eTail East 2015: Boston
Track A: Growth in Retail
Eldar Sadikov
CEO of Jetlore
@elversatile
eldar@jetlore.com

2. Growth in e-commerce industry as a whole
China/India/Asia
US
Europe
Latin America
Global 15%
18%
22%
15%
40%
2013: B2C e-commerce accounted for 0.92% of the global GDP.
2018: Projected to reach 1.61% of the global GDP.

3. Growth for an individual
e-commerce business
as a function of time
‣ In the early days of your company, you’ll
grow simply by building awareness.
‣ You’ll build a high-functioning website,
create some ads, and grow a subscriber
list.
‣ But once you cross the two million in
revenue line, you’re going to need to
work harder to achieve the same results
Averagegrowthrate
0%
50%
100%
150%
200%
250%
$1M $2M $9M
100%
130%
223%
GROWTH RATE BY REVENUE SIZE

4. How do you acquire users?
Major user acquisition channels
65%
17%
16%
2%
Search: organic and PPC
Email & direct mail discounts/promotions
Referrals/affiliates
Retargeting/social/other

5. Growth is more about Retention than AcquisitionRevenue
(Millionsof$$)
0.0
2.5
5.0
7.5
10.0
Low-performing
e-commerce businesses
2012 2013 2014 2015 2016
Revenue
(Millionsof$$)
0.0
2.5
5.0
7.5
10.0
High-performing
e-commerce businesses
2012 2013 2014 2015 2016
Existing users New users Existing users New users

6. Top performing companies
generate most revenue from
repeat customers
‣ It may seem counter-intuitive, but proper
growth strategy is about retention and
increasing LTV
‣ As the user base grows, cost per
acquisition only gets higher which
makes it increasingly more important to
retain users.
‣ Higher customer LTV allows for higher
cost per acquisition!
Percentageoftotalrevenue
10%
30%
50%
70%
90%
Months since first order
0 9 18 27 36
New
Repeating
> 50%
repeat revenue
TOP QUARTILE – NEW VS REPEATING REVENUE

7. The key to repeat revenue is customer LTV
Average number of orders for
top-performing companies is
2x higher than average
AOV for top performing
companies is 50% higher
than bottom performing ones
Customer lifetime value for
top performing businesses is
5x higher than average
3 7
Bottom 3 quartiles Top quartile
$0
$20
$40
$60
$80
$100
$60
$72
$76
$94
$0
$1,000
$2,000
$3,000
$4,000
$508$460
$769
$3,641
5x
higher
CLV BY QUARTILEAOV BY QUARTILE

8. So how can I increase LTV
and retention?
‣ Increasing LTV is about having:
• A tight conversion funnel
• Making a customer go through that
funnel again and again
‣ How do you tighten the funnel?
• Shopping cart triggers
• Browsing/search triggers
‣ But even if your funnel is tight, your
retention may be very poor!

9. How can I make a customer
go through the funnel many
times?
‣ The key here is to make daily content an
exciting event (give a reason to come back)
‣ Scarcity is one way: limited time events
‣ Product curation is another way: help users
discover new products every single day
‣ Product curation could be done by humans
or driven by machines

10. Other ways to increase
retention?
‣ Loyalty programs
‣ Customer lifecycle orchestration
(lifecycle triggers)
• Inactivity triggers (churn prevention)
offering special coupons
• Birthday triggers with special
promotions
• Other triggers

11. Always remember
about the top of
the funnel!
Revenue
(Millionsof$$)
0.0
4.5
9.0
13.5
18.0
2012 2013 2014 2015 2016
Existing Users New Users