This document discusses the importance of customer experience (CX) over simply driving traffic. It argues that companies often misallocate marketing spend solely toward increasing traffic rather than improving the visitor experience. Only a small percentage of visitors actually intend to purchase. The key is to understand different visitor types and individualize the experience. Great CX during the discovery process is crucial for conversion. It provides examples of companies like eSalon.com and Free People that deliver personalized discovery experiences through guided help, social interactions, and real-time assistance. Improving CX can significantly increase customer satisfaction, conversions, sales, and lifetime value.
1. Why investing!
$1 in CX !
is better than !
$1 in Traffic
Originally presented @ eTail West 2015
2. #AwesomeCX Needle.com
1
What we’re talking about
Misallocating
marketing spend
toward traffic?
Improve
understanding
visitors AND visits.
Individualize
experiences for
each visit types.
Great CX during
Discovery is the key
ingredient.
2 3 4
8. #AwesomeCX Needle.com
1-5%
Intend to buy
35-40%
“Conditional” intent
CONVERSION
> 10%
3-5%
< 1%
TRAFFIC SOURCE
Direct
Bought
PaidNaturalRe-targetedE-mail
50-60%
Little or no intent to buy
10% sales : 20% traffic
@ 1% conversion rate, Breakeven . . .
AOV = 100x CPA
Average
2.0%
sitewide
Biggest opportunity lies in converting traffic you’ve already paid for
9. #AwesomeCX Needle.com
Improving conversion for target segments pays off
1-5%
Intend to buy
35-40%
“Conditional” intent
50-60%
Little or no intent to buy
Invest here for maximum return
10% sales : 0.5ppts CR%
0.5 ppts CR% : 2-3% Engagement
CONVERSION
> 10%
3-5%
< 1%
Average
2.0%
sitewide
10. #AwesomeCX Needle.com
53% of companies spend
less than 5%
of total budget
on conversion rate
optimization.
eConsultancy, 2014
And yet…
15. #AwesomeCX Needle.com
Typical conversion improvement list
þ Place CTA above the fold & make it bigger.
þ Add more product details – visuals and videos.
þ Shorten forms & make flows frictionless.
þ Provide testimonials & other user-generated content.
þ A/B Test non-stop
16. #AwesomeCX Needle.com
Amazon = selection,
availability, price
You (today) = content, reviews,
promos, recommendations
Just a bunch of noise, which leads to frustration,
long lead times to discover/buy, lower trust, etc.
vs.
Plus, Amazon already has most of the content anyway.
17. #AwesomeCX Needle.com
You (tomorrow) = individualization, simplified CX
for high, low & medium propensity to buy
Get out of their
way; self-service
is ultra easy
and quick
Automate,
content-oriented,
with a goal to
convert to MPTB
Focus on helping
them find what they
had a “conditional”
intent to buy
Specific answers,
trusted input, related
items, etc.
19. #AwesomeCX Needle.com
• Unable to get specific questions answered
• No access to real-time help
• Long, tedious ‘self-service’ discovery
• Non-contextual, impersonal reviews
• Trusted advice is elusive; in-store visits
reduce convenience
• Targeted searching vs. browse
Current online experience
20. #AwesomeCX Needle.com
• Text more, talk less
• View more, read less
• Short-form content
• Strangers over brands
• Customers over sales associates
• People who share interests
• Everything now
• Great design
• Great experiences
How consumers communicate
Who consumers trust What consumers expect
Why is CX important now
21. #AwesomeCX Needle.com
eConsultancy & Adobe Digital Trends Report, 2015
CX is the single most
exciting opportunity
in 2015
Why is CX important now?
32. #AwesomeCX Needle.com
Free People Me
• Great social brand
experience
• Easy to purchase
in the discovery process
• Real-time interaction
with the best community
members
Awesome Would Be Awesomer
33. #AwesomeCX Needle.com
Case Study | Needle & Nikon
Their CX challenge
• Customers need answers to detailed, technical questions.
• Lack control of brand experience across channels
• Couldn’t access and enable Nikon fans
The Needle solution
• Rule-based targeting to deliver real-time, human
interaction with “conditional” shoppers.
• Sourced community of Nikon photographers, and
enabled via gamified, virtual service platform
Impact to date
NPS: 73
CSAT: 9.1
Conversion Lift vs. Site: 8.9x
Incremental Revenue Rate: 84%
36. #AwesomeCX Needle.com
1
4 key takeaways
Misallocating
marketing spend
toward traffic?
Improve
understanding
visitors AND visits.
Individualize
experiences for
each visit types.
Great CX during
Discovery is the key
ingredient.
2 3 4
37. #AwesomeCX Needle.com
When online customers have
a great experience
• >70 NPS
• 9.2 CSAT
They buy, they buy more,
& they buy more often
• 6-15x Conversion
• +10-35% AOV
• 20-35% LTV
• +5-10% Total Revenue
Lack of trust and confidence
Inability to find relevant
information in timely manner
Matching experience to
customer’s context and situation
Enabling best people (advocates)
to deliver great service
Delivering emotional and
connected experiences
We solve big CX challenges… …for great brands… …with measurable impact
Needle in a nutshell
39. Learn how Taylormade & Nikon advocates –
who were onsite @ eTail West – put their superpowers to
work for the brands they love.
Meet
Travis
Meet
Jay