Customer Retention:
Learn Critical Factors
for Maintaining Online
Commerce


 By Dawn Marie Yankeelov, Aspectx
Tech To Be Covered: 4 C’s of
        Customer Retention
• Conversion
• Automated Channel Crossings
• Cooperative Communica...
Do We Still Need Websites?
--”Think wholesale, less retail. Think
   distribution, less destination. Think serving,
   les...
Ecommerce: Recession?
• The number of online shoppers through May 2010 at
  the sites of Akamai clients was up 11.87% over...
Ecommerce:
Maintains Annual Growth
Retention vs. Acquisition
• 2000-2007: Ecommerce growth averages 20%
  annually
  • Focus on acquiring large masses of inc...
Key to Retention and Conversion
           lies in the Customer Experience
   “Customer experience is the hot concept of t...
Conversion Rate Possibilities
 In November of 2008, almost one-third
 (30.6%) of all visitors to ProFlowers.com
made a pur...
Conversion Begins with Greater
  Message/Product Relevancy



…greater Product Relevancy begins
  with Consumer Analytics
Usability Increases Conversion
• Analytics can help test site
  usability
• Eddie Bauer decreased
  home page departures b...
Altered by Behavior (Maxymizer)
1. U.K. mass merchant TheHut.com discovered
   that moving its “Add to Basket” button off ...
Tied to
Google
Analytics
New Class:
Ranging from $49 to $499
Also Helping Increase Conversion:
       More Relevant Search
• May 2010: thefind overtakes Yahoo Shopping to
  become No....
Survey Said….
• A picture is worth a
  thousand words.
• 77% of surveyed
  retailers currently are
  or intending to
  inc...
Conversion Includes Social
         Media
5 Social Media Trends to Watch
             1. Crowdsourcing
             2. Group Buying
             3. Mobile Ads leadi...
Best Practices/New Tools

Digital River clients that deploy its
new SocialStream tracking tool can
send any product promot...
Case Samples: Dell, 1-800 Flowers, P&G
    brand Pampers, MyEtsy, Threadless
Social E-Commerce Services
         BrandMe
C...
Hot Stuff: Discounts of Day
Twitter Climbs on board
Amazon: Watch It Unfold
The Gilt Plan
A whopping 27%
of all Yelp
searches come
from their iPhone
application.
Over half a million
calls were made to
local busin...
The Mecca: The
     Recommendation Engines
• Personalization delivered through ‘mass
  customization’
  “The more targeted...
Proving in Metrics
Conversion:
The Spenders Matter
Getting Them to Notice
--Women utilize the Internet at a slightly higher rate than men
  for professional information or e...
Following Best Practices on
          Cross Channels
Best in Class Performance shared several
 characteristics:
1. 56% use...
The Ultimate Truth
   Focus on High Value Customers
   to Increase Return on Marketing
              Investments.
It’s Che...
Strategic Measurement
A. # of Loyal Shoppers. % of brand purchased by loyal
   shoppers; % of marketing budget allocated t...
Questions to Ask
• Can we send individualized communications to our top
  shoppers? Personalized URLs, for example.
• How ...
Move to Micro-Targeting
• To identify and reach people that will
  consume these more relevant items
• Companies switch sp...
Methods to Target Consumers
A. Rules-Based: Show Items Based on Rules
B. Comparative Filtering: Show Items Based on
   Use...
Behavioral Inference has
   reached the Web
Video Tops the Cross Channel
       Campaign List
Video Stats Lift Performance
• According to Forrester Research, the percentage of the
  top 50 US online retailers that of...
Product Videos Work
Incentives and Payment Cards
         On the Rise
Mobile Marketing
    Target understands the importance of
    having multichannel mobile retail support.
•   In May 2008, ...
Cooperative Communication to
TurnTo Networks, a
                   Third Parties
leader in social
commerce, today         ...
WinBuyer Corp.
Third Party Listings
Google Product Search
Reviews and the Like
Google: Your Friend
Value of Biggest Fan
• Track Fan’s Level of Engagement by
  • Sweepstakes
  • Contests
  • Promotions
  • Lists
  • Polls
...
Packstream
• Retention marketing software delivering
  relevancy at the point of package delivery
Adotas.com Reports
Fan cross applications see a seven to 10
 times increase in interaction rates with their
 social media ...
The Summer Romance: 2010 Cross
         Channel Couple
Amazon friends Facebook
The world's largest retailer is using the s...
Clarity of Messaging
• Dynamic Pricing Possibilities
• Languages of Choice
• Payment Options
• Insider Deals, Content, Acc...
Clarity of
Messaging
101:
Dynamic
Promotions to
Individual
Customers
WrapUp
• CLARITY OF MESSAGING
Customer Retention means Targeted
 Messaging to your Public Audiences
  • MicroTargeting
  •...
Wrapup
• COOPERATIVE COMMUNICATIONS
Customer Retention means Social
 Business/Social Media
  • Calls to Action
  • Engagem...
Wrapup
• CHANNEL CROSSINGS
Customer Retention means cross
 marketing amongst a number of
 mediums
  • Watch for more Mobil...
Wrapup
• CONVERSION
Customer Retention means reviewing
 online actions and converting them to
 sales and upsells from the ...
Aspectx
• Dawn Marie Yankeelov, Founder of Aspectx
  • dawny@aspectx.com
  • Twitter: @dawnyaspectx
  • Facebook, Linked I...
Customer Retention: Learn Critical Factors for Maintaining Online Commerce Success
Customer Retention: Learn Critical Factors for Maintaining Online Commerce Success
Customer Retention: Learn Critical Factors for Maintaining Online Commerce Success
Customer Retention: Learn Critical Factors for Maintaining Online Commerce Success
Customer Retention: Learn Critical Factors for Maintaining Online Commerce Success
Customer Retention: Learn Critical Factors for Maintaining Online Commerce Success
Upcoming SlideShare
Loading in …5
×

Customer Retention: Learn Critical Factors for Maintaining Online Commerce Success

1,920 views

Published on

The challenge for retailers is no longer how to lure shoppers online, but how to add value for their existing customer base. Examine critical business functions for online commerce success, as well as best-in-class factors — transpromo, crosschannel campaigns and deep-dive personalization. Learn the “four Cs” of staying alive — conversion, clarity of messaging, channel crossings and cooperative communications with third parties. Also, learn several key software and cycle management tools that incorporate analytics and printed literature.

Published in: Technology, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,920
On SlideShare
0
From Embeds
0
Number of Embeds
97
Actions
Shares
0
Downloads
65
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Customer Retention: Learn Critical Factors for Maintaining Online Commerce Success

  1. 1. Customer Retention: Learn Critical Factors for Maintaining Online Commerce By Dawn Marie Yankeelov, Aspectx
  2. 2. Tech To Be Covered: 4 C’s of Customer Retention • Conversion • Automated Channel Crossings • Cooperative Communications w Third Parties • Clarity of Messaging • Conclusion
  3. 3. Do We Still Need Websites? --”Think wholesale, less retail. Think distribution, less destination. Think serving, less selling. --Websites are important because you own them. They feed into your database, and the users they attract tend to more loyal and viral, a big reason we should never give short shrift to direct feedback flows.” ---Pete Blackshaw, Ad Age, August 2010
  4. 4. Ecommerce: Recession? • The number of online shoppers through May 2010 at the sites of Akamai clients was up 11.87% over an average day in 2009—which the Akamai Online Shopping Data Visualization Tool sets as its benchmark. • Last year shoppers were 6.23% below that average. • Transactions 2010 were up 36.71% over the average day vs. 21.2% on Memorial Day 2009, and sales were up 37.44% vs. 24.33% last year.
  5. 5. Ecommerce: Maintains Annual Growth
  6. 6. Retention vs. Acquisition • 2000-2007: Ecommerce growth averages 20% annually • Focus on acquiring large masses of increasing new online shoppers • 2007-2009: Ecommerce growth totals 10% • Focus shifts to retaining highly valuable customer bases and maximizing conversion of visitors to buyers • Packstream Research, 2009
  7. 7. Key to Retention and Conversion lies in the Customer Experience “Customer experience is the hot concept of the moment in business circles. It's certainly not a bad thing to be pleasant with customers and make them comfortable, but too often companies are using ‘customer experience’ as a firewall between themselves and customers. The other half of customer service -- and the thing that balances out ‘Have a nice day!’ -- is overt and outbound customer engagement.” --Denis Pombriant, Managing Principal of the Beagle Research Group in CRM Buyer, 2010
  8. 8. Conversion Rate Possibilities In November of 2008, almost one-third (30.6%) of all visitors to ProFlowers.com made a purchase — the highest conversion percentage among all retail websites, according to Nielsen.
  9. 9. Conversion Begins with Greater Message/Product Relevancy …greater Product Relevancy begins with Consumer Analytics
  10. 10. Usability Increases Conversion • Analytics can help test site usability • Eddie Bauer decreased home page departures by 41% through Coremetrics usability tests.
  11. 11. Altered by Behavior (Maxymizer) 1. U.K. mass merchant TheHut.com discovered that moving its “Add to Basket” button off of its category pages boosted conversions 64%. 2. A red circle placed at the top of every product image indicating the discount from the regular retail price worked. 3. Not having the Add to Basket icon at the bottom of each product listing left more room to show more products on a page without having to scroll down as far.
  12. 12. Tied to Google Analytics
  13. 13. New Class: Ranging from $49 to $499
  14. 14. Also Helping Increase Conversion: More Relevant Search • May 2010: thefind overtakes Yahoo Shopping to become No. 2 search engine for retail queries, according to comScore • Trailing only Google, thefind’s search engine helps users make buying decisions before visiting the retail site
  15. 15. Survey Said…. • A picture is worth a thousand words. • 77% of surveyed retailers currently are or intending to incorporate images into paid search.
  16. 16. Conversion Includes Social Media
  17. 17. 5 Social Media Trends to Watch 1. Crowdsourcing 2. Group Buying 3. Mobile Ads leading to Payments 4. Comparison Pricing 5. Having a Social Media Policy
  18. 18. Best Practices/New Tools Digital River clients that deploy its new SocialStream tracking tool can send any product promotion or other announcements through their Facebook and Twitter accounts and receive reports on how much traffic and revenue they generated, conversion rates, and other metrics such as revenue per visitor.
  19. 19. Case Samples: Dell, 1-800 Flowers, P&G brand Pampers, MyEtsy, Threadless Social E-Commerce Services BrandMe Creating Virtual Models for effective on- line shopping. Are you ready for the runway? Create your own 3D virtual model for women, and dress up with the latest looks. Social Store Builder The solution enables merchants to push their products onto social networks sites such as MySpace and Facebook. Off the Wall $30K plus 8%, a selling app for your company in FB status updates.
  20. 20. Hot Stuff: Discounts of Day
  21. 21. Twitter Climbs on board
  22. 22. Amazon: Watch It Unfold
  23. 23. The Gilt Plan
  24. 24. A whopping 27% of all Yelp searches come from their iPhone application. Over half a million calls were made to local businesses directly from the iPhone App, or one in every five seconds. Nearly a million people generated point-to-point directions to a local business from their Yelp iPhone App last month.
  25. 25. The Mecca: The Recommendation Engines • Personalization delivered through ‘mass customization’ “The more targeted the offer, the fewer gimmicks you will need to sell it. It will sell itself because it is what people want.” --Edwina Dunn, Dunnhumby
  26. 26. Proving in Metrics
  27. 27. Conversion: The Spenders Matter
  28. 28. Getting Them to Notice --Women utilize the Internet at a slightly higher rate than men for professional information or enrichment (Pew Internet). --Women still appear to be time-starved purchasers. --There is a small but significant increase in the amount spent by women as work hours increase. Women with high-speed connections, who research products and who participate in Internet auctions spend more online. --By far, though, the largest effect on spending (for both women and men) comes from having an online deferred payment account. Brendan Hannah and Kristina M. Lybecker, Colorado College Working Paper 2009-02 May, 2009
  29. 29. Following Best Practices on Cross Channels Best in Class Performance shared several characteristics: 1. 56% use campaign performance to optimize future campaigns 2. 52% optimize all cross channel efforts by eliciting input from agencies, partners, and other in the value chain 3. 50% update customer profiles based on customer interaction --Aberdeen Group, 2009
  30. 30. The Ultimate Truth Focus on High Value Customers to Increase Return on Marketing Investments. It’s Cheaper to Upsell or to Cross-Sell to Existing Customers than it is to New Customers.
  31. 31. Strategic Measurement A. # of Loyal Shoppers. % of brand purchased by loyal shoppers; % of marketing budget allocated to loyal shoppers. B. Create More Value. Basket size, categories shopped, visit frequency. C. More Relevant Product Assortment by Key Shoppers. D. Quality Trials Vs. Brand-Equity Advertising. Shopper Marketing Magazine, June 2009
  32. 32. Questions to Ask • Can we send individualized communications to our top shoppers? Personalized URLs, for example. • How can we understand our price-sensitive shoppers, and the prices at which we hold and grow their business? • How can we create a new product line that is very relevant to our high value shoppers? • How can we reflect shopper behavior and put our brand where our shoppers will expect to find it? --from Dunnhumbly USA white paper, 2009
  33. 33. Move to Micro-Targeting • To identify and reach people that will consume these more relevant items • Companies switch spend from mass broadcast to highly targeted attention grabbing activities for tighter segments • Consumers interact online through “relevant published content”
  34. 34. Methods to Target Consumers A. Rules-Based: Show Items Based on Rules B. Comparative Filtering: Show Items Based on User Ratings C. Behavioral Targeting: Show items based on inferred behavioral segments Key Fact: Text and Content Characteristics Have a Measurable Effect
  35. 35. Behavioral Inference has reached the Web
  36. 36. Video Tops the Cross Channel Campaign List
  37. 37. Video Stats Lift Performance • According to Forrester Research, the percentage of the top 50 US online retailers that offer videos on their sites increased to 68% in 2009 from 18% in 2008. • Numerous case studies have also confirmed that visitors who view product videos are more likely to buy than visitors who do not. (Emarketer Survey, 2009)
  38. 38. Product Videos Work
  39. 39. Incentives and Payment Cards On the Rise
  40. 40. Mobile Marketing Target understands the importance of having multichannel mobile retail support. • In May 2008, Target launched its mobile site, where guests could view products, read reviews, check ratings, find the nearest store, browse the Weekly Ad and view latest marketing campaigns. • The retailer launched the Target iPhone application later that year, in November 2008. • In 2009, Target extended the mobile offerings on its iPhone application and for mobile in general, just in time for the holiday season. • During the 2009 holiday season, the Target iPhone application ranked as high as No. 1 in the free lifestyle application download category.
  41. 41. Cooperative Communication to TurnTo Networks, a Third Parties leader in social commerce, today Facebook Open Graph announced the general package: sites will have availability of the access to a one-click "Like" button that TurnTo social connects to Facebook, commerce suite, more "social plug-ins" providing online to pull an individual retailers with next- user's Facebook friends generation social and their activity into shopping tools… by third-party sites, and a over 35 online stores, toolbar that aggregates and adds the new all these features as well as live chat. social purchasing sharing product to the line-up.
  42. 42. WinBuyer Corp.
  43. 43. Third Party Listings
  44. 44. Google Product Search
  45. 45. Reviews and the Like
  46. 46. Google: Your Friend
  47. 47. Value of Biggest Fan • Track Fan’s Level of Engagement by • Sweepstakes • Contests • Promotions • Lists • Polls …..right on your fan pages…..
  48. 48. Packstream • Retention marketing software delivering relevancy at the point of package delivery
  49. 49. Adotas.com Reports Fan cross applications see a seven to 10 times increase in interaction rates with their social media content and often quadruple sales….. ….and consumers can be analyzed for upsell…..
  50. 50. The Summer Romance: 2010 Cross Channel Couple Amazon friends Facebook The world's largest retailer is using the social networking giant to serve up personalized product recommendations. Consumers can log in to their Facebook profiles through Amazon.com to receive tips for movies, music and books.
  51. 51. Clarity of Messaging • Dynamic Pricing Possibilities • Languages of Choice • Payment Options • Insider Deals, Content, Access to People • Listening to Feedback and Building Lifetime Relationships
  52. 52. Clarity of Messaging 101: Dynamic Promotions to Individual Customers
  53. 53. WrapUp • CLARITY OF MESSAGING Customer Retention means Targeted Messaging to your Public Audiences • MicroTargeting • Customer Feedback and Crowdsourcing
  54. 54. Wrapup • COOPERATIVE COMMUNICATIONS Customer Retention means Social Business/Social Media • Calls to Action • Engagement (contests, solicited feedback, acknowledgement of top buyers) • Comparative Pricing • Reviews, and Participation
  55. 55. Wrapup • CHANNEL CROSSINGS Customer Retention means cross marketing amongst a number of mediums • Watch for more Mobile • Sophisticated Customer Profiling • Touch Often theTop Valued Customers
  56. 56. Wrapup • CONVERSION Customer Retention means reviewing online actions and converting them to sales and upsells from the most loyal customers. • Data Analytics • Outbound Customer Engagement • Product Relevancy • Usability Tests
  57. 57. Aspectx • Dawn Marie Yankeelov, Founder of Aspectx • dawny@aspectx.com • Twitter: @dawnyaspectx • Facebook, Linked In, Plaxo Pulse • www.aspectx.com

×