Video Commerce And The Customer Lifecycle

Justin Foster Founder, Video Commerce Consortium Co-Founder, Liveclicker [email_address] 253.988.3183

“… while some older viewers had experimented with watching long-form video online, "three quarters of those over 65 who watch video online responded that they have never watched TV shows or movies online.” Sept 26, 2008 – ABI Research - Pew Research Study, August 17, 2008

38% of those 55+ streamed a digital video off the Internet during the last 30 days

- June 2008, Ipsos

13% of active online video watchers are from the 55+ demographic

- October 2008, Forrester Research

21% of 55+ are “light” users, 13% are “medium” users and 15% are “heavy” users

- September 2008, comScore Networks

The Customer Lifecycle is a coordinated tactical effort to move the prospect or customer along in the lifecycle continuum… either from stage to stage or further within one stage. Best Customer Lifecycle Typical Customer Lifecycle Acquire > Convert > Grow > Service > Win Back

Suspect Prospect Customer Active Customer Best Customer Recaptured Customer Best Customer Lifecycle Typical Customer Lifecycle Acquire > Convert > Grow > Service > Win Back Promotional: Celebrity Endorsement Commertainment: Featured Product Education: Feature & Benefit Education: How-To / Product Demo Service: Product Demo Service: Troubleshooting & Repair Promotional: Bandwagon Promotional: Testimonial Promotional: Product Demo Commertainment: Featured Product Education: Customer Testimonial Service: Interest-Based Education Promotional: Humor / Viral Promotional: Features & Benefits Promotional: Brand-Oriented Promotional: Celebrity Endorsement Promotional: Bandwagon Promotional: Testimonial Promotional: Product Demo Promotional: Humor / Viral Promotional: Features & Benefits Promotional: Special Offer Promotional: Brand-Oriented Promotional: Special Offer

Suspect Prospect Customer Active Customer Best Customer Recaptured Customer Best Customer Lifecycle Typical Customer Lifecycle Acquire > Convert > Grow > Service > Win Back Affiliate Sites (CJ, LinkShare etc) Home Page Email Campaign Landing Page Micro TV On-Site Product Page Brand Page Support Page Product Page Email from Call Center Targeted Online Display Email Campaign Landing Pages Product Page Video Site (yoursite.tv) YouTube & Video Services (iTunes, Vimeo, etc) Video SEO (Google, Live, etc) Targeted Online Display (adbrite, Doubleclick, etc) Video Site Syndication Search Results Page Category Page Social Networks (Facebook, Twitter, etc) Home Page Micro TV On-Site Site Blog Paid Placement in 3 rd Party Media Micro TV On-Site Shopping Cart

Suspect Prospect Customer Active Customer Best Customer Recaptured Customer Best Customer Lifecycle Typical Customer Lifecycle Acquire > Convert > Grow > Service > Win Back First-Time Orders Increase in Customer LTV Increased Site Conversion Rates First-Time Insertion Orders Lowered Servicing Costs Increase in Order Frequency & Customer LTV Repeat Insertion Orders Higher Pricing for Ad Inventory

Offer Consumer Generated Video Options

Comments & Ratings Provide Credibility

Sharing via Social Networks, Blogs & Email

Category Videos Differentiate the Offering

Focus on Process Automation

Don’t Get Hung Up in Production

Consider Service Videos

Placement as a Secondary Element On-site

Auto-Play Off

Focus on Tipping the Sale

Syndication Off-Site is Key

Short-Form Promotional Content Wins

Direct Response Elements are Crucial

Make use of Video SEO Techniques

Group A – No Video Group B – With Video # Product pages served 25,000 25,000 Conversion rate (did not view video) 6.63% 10.00% Conversion rate (viewed video) 6.63% 15.84% Conversion rate increase (did not view video) N/A 50.1% Conversion rate increase (viewed video) N/A 138.9%

Launched in 2008

Prominent SEO placement

Liquidated inventory of key product

Boosted conversion rates

“ Conversion rates increased. Plus, we quickly validated the SEO pilot.” - Jon Nordmark, Founder & CEO, eBags.com

Launched in 2007

55% of products on-site have videos

Credited with coining the term “Video Commerce”

Collect information from stakeholders in a formal discovery process to assess “organizational readiness.”

Video Strategy

Basic SWOT Analysis

Program Goals & Areas of Focus

Resource Review

Program Tactics and Automation

Encoding, Hosting, Asset Management, Syndication, Community, Monetization, Customer Experience.

Pre-Production, Production, Post-Production Processes

Reporting, Analysis, Testing

Review your organization’s current video program (content, processes, technology, resource management, best practices) and score the programs on a performance grid.

Map the current video program to the customer lifecycle to identify missing elements in the strategy.

Facilitate a collaborative meeting with stakeholders to review program ideas, recommendations, solicit feedback, and score potential programs based on their expected ease of implementation and return to the organization.

Plots scores for each program on a matrix to identify quick wins.

Quick Wins First

Be Creative with Content Acquisition

Don’t Make it Needlessly Complex

www.video-commerce.org Largest and fastest-growing consortium of interactive marketers seeking to learn about and advance the use of video in e-commerce