4. Every marketing channel is controlled by algorithms. These algorithms,
along with competition, increase the costs of customer acquisition
Algorithmic Based Marketing Channels
Problem:
6. • Like Campaigns – Target people with a history of liking pages
• C2W Campaigns – Target people with a history of clicking links in FB
• A2C Campaigns – Target people who initiate checkouts from FB ad
Algorithms
EdgeRank for Advertisers:
7. • Backlinks
• Content relevance
• Website Quality
• UX
SEO: RankBrain
• Time on site
• Bounce rate
• Click through rate
• Pogo sticking
9. When estimating the expected impact of ads, Google considers
factors like:
• Bids
• relevance
• The ad's expected click through rate
• The quality of our landing page
• The history of that ad
• The historical AdWords account performance
PPC: Ad Rank
10. When estimating the expected impact of ads, Google considers
factors like:
• Bids
• relevance
• The ad's expected click through rate
• The quality of our landing page
• The history of that ad
• The historical AdWords account performance
Amazon: A9
12. When a product goes out of stock with SEO:
• The dead page leads to pogo sticking
• The page is removed from Google
• Another website takes its place
When the product comes back in stock
• We are re-evaluated
• We are evaluated against the site that took our place
• There is a strong chance we will never regain those
rankings, again.
SEO: Out of Stock
13. When a product goes out of stock with PPC:
• We exit the auction
• Our metrics are no longer relevant
• Our history is no longer an asset
When the product comes back in stock
• We re-enter the market
• The ad is considered a new ad
• We must then rebuild history from the ground up
• Costs are higher due to lower ad rank, and increased
adrank of the website that replaced us
PPC: Out of Stock
14. When a product goes out of stock with Amazon:
• We lose our product selling metrics
• We lose our search ranks
• Other sellers immediately start getting our share of sales
• We lose quarantined sales
When the product comes back in stock
• We start generating new metrics
• We have less visibility because of lower search ranks
• We must invest in PPC to drive people to the liting in
order to regain search position
• Costs are higher and it takes longer to get the product
back to selling
Amazon: Out of Stock
15. Out of Stocks…
Commonalities
When a product goes out of stock, then comes back in
stock, it doesn't just start making sales where it left
off.
It literally takes weeks to months before that product
regains momentum... IF it ever regains momentum.
16.
17.
18.
19. - Allows us to not just help the customer find what they want. It
allows us to help them to find what they NEED.
- This gives us a position of strength. It positions us no longer as
just a nameless faceless website, but trusted advisors. And that
adds value in an otherwise commoditized market which allows us
to command higher prices.
Challenger Sale
20. Sales Funnels/Website Upgrades and the Future
What the customer wants is not the conversion point. What the
customer wants is the conversation point.
Website Updates and Upgrades
21. Sales Funnels/Website Upgrades and the Future
- The conversation point allows us to guide them to what the need.
- The conversion point is getting them to purchase what they
"need.“
- They WANT a Merv 8? But a Merv 11 is better. They want a 2
pack? A 4 pack will save them from having dirty filters. Why not
auto reorder to save time, money and hassle. OEM? Why not a
cheaper quality filter..."
Website Updates and Upgrades
22. Profit
- Make $0.18 profit on an average burger purchase
- By cross selling (fries/drink) & Upselling (Super size it), the profit
increases by an average $1.32 per customer
Increase profits ~8X!
McDonalds
Revenue
- Spends ~$1.91 in advertising to get a customer in the Drive Thru
- Makes $2.09 revenue on an average burger purchase
- By cross selling (fries/drink) & Upselling (Super size it), they increase
revenue an average profit of $1.77 per customer ($3.86 Total)
23. Creating a data driven, principle based
marketing plan in a complex, competitive and
oversaturated market
Marketing, Algorithms and
Commoditization
Editor's Notes
I am an ecommerce evangelist. I speak at retail conferences around the World. NRF, Online Retailer, OIA and other retail groups have me come teach the importance of incorporating a strategic ecommerce based marketing plan into their retail buisness.
Some of these elements are scary and daunting, but they dont have to be. I do not want to be the smartesdt guy in the room. Instead, when you guys leave, I want you to have a little more knowledge to help you make better decisions about buying businesses, building businesses and growing businesses.
One day I hope to be sitting at that table with you guys, but until then I.... [something]
Then go into the slide title
Everything you see on the internet is determined by machines and mathmatics. Google, twitter… etc.
These machines have curated and generated the items they “THINK” you want to see. You arent seeing what you want to see. You are seeing what you NEED to see. We will talk about that in more detail later.
Everything you see on the internet is determined by machines and mathmatics. Google, twitter… etc.
These machines have curated and generated the items they “THINK” you want to see. You arent seeing what you want to see. You are seeing what you NEED to see. We will talk about that in more detail later.
Everything you see on the internet is determined by machines and mathmatics. Google, twitter… etc.
These machines have curated and generated the items they “THINK” you want to see. You arent seeing what you want to see. You are seeing what you NEED to see. We will talk about that in more detail later.
In the face of an initiative or strat that has no data, I use principles to guide my thoughhts. Even with data, I run the ideas through my principles. My sales principals are based on the Challenger Sales philosophy
Brief background story - why I like retail - Help the customer find what they need. Then, we arent just another grocery store, we are partenrs with them in helping to enhance their lives.
Sales Funnels
Challenger Sales philosophy
We take what the customer wants, and algorithmically help them to purchase what they need.
Sales Funnels
Sales Funnels
By giving the customer what they “want” McDonalds makes 18 cents. By giving the customer what they need… a complete meal, McDonalds makes 8x the profit. The customer is happy and McDonalds is happy