The document discusses the shift from transactional to relationship commerce. It notes that top performing e-commerce companies have customers that order 2x more frequently, with averages orders 50% higher in value, and customer lifetime values that are 5x higher than average. Relationship commerce focuses on building user profiles and personalized experiences through tools like loyalty programs, product recommendations, and personalized communications like emails. The key aspects of relationship commerce are maximizing logged-in traffic, having users invest in profiles, and offering engaging personalized experiences across the site and communications channels.

1. THE SHIFT FROM TRANSACTIONAL COMMERCE
TO RELATIONSHIP COMMERCE
Eldar Sadikov
CEO of Jetlore
@elversatile
eldar@jetlore.com
eTail West 2016: Palm Springs
Track E: The Shifting Fundamentals of eCommerce
Tuesday, February 23 2016

2. E-commerce success is about repeat revenue / high 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
* Data provided by RJMetrics.

3. › SEO is the primary transaction driver
› Product recommendations in the context
of a specific session / product view
› Dominance of guest checkout
(little focus on user identity)
› Focus on triggers in response to a user
session / action
Transactional Commerce

4. Relationship Commerce
› SEO is a user acquisition strategy, not the
transaction driver
› User identity / profile is key
› Nurture relationship via personalized
communication with the user:
› personalized periodic emails and lifecycle
marketing (welcome series, lifecycle emails)
› Engaging and personalized experience in
the upper funnel

5. › No more guest checkouts!
› Maximize the percentage of logged-in traffic
Traits of relationship commerce

6. › No more guest checkouts!
› Maximize the percentage of logged-in traffic
› Have users invest in their profiles
› Idea boards, favorites, reviews, ratings, ability to follow other users
› Loyalty / rewards programs
Traits of relationship commerce

7. › No more guest checkouts!
› Maximize the percentage of logged-in traffic
› Have users invest in their profiles by contributing data
› Engaging and personalized upper funnel experiences:
› Promotional and lifecycle emails
› Homepage experience
› Product listing pages
› Search experience
Traits of relationship commerce

8. The promotions are
personalized to each user
based on the user’s likelihood
to purchase from the associated
sub-catalog of items.
↻

9. User is presented with the most
relevant sub-catalogs and top
five products within each of the
top sub-catalogs.
↻

10. Other relevant sub-catalogs are
presented with each sub-
catalog represented with an
appealing relevant image. For
example, Women’s Shoes are
shown as heels rather than flats.
↻

11. ↻

12. ↻
Products within sub-catalogs
are re-ranked for each user
based on relevance: based on
user’s shopping preferences,
favorite brands, styles,
appropriate price range.

13. Customer lifetime value for
top performing businesses is
5x higher than average
$0
$1,000
$2,000
$3,000
$4,000
$508$460
$769
$3,641
5x
higher
CLV BY QUARTILE
Transactional commerce is reactionary.
Relationship commerce creates an urge to
come back for more fresh and relevant
experiences.

14. RELATIONSHIP COMMERCE PERSONALIZATION
@elversatile
eldar@jetlore.com
Booth #120