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Mapping Mind & Method: The Buyer's Journey in the Age of Inbound Commerce

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As merchants we are often too focused on engaging customers at the moment of purchase. This leads us to overly rely on expensive outbound acquisition activities that are often ineffective. Join Danny Essner, Head of Merchant and Partner Marketing at Magento, and Sam Mallikarjunan, Head of eCommerce Marketing, to learn how to map customer buying journeys and leverage Inbound Commerce to engage and win customers before they’re ready to buy. In this webinar we’ll show you how to build long-term customer relationships that optimize for customer lifetime value.

Published in: Business, Technology

Mapping Mind & Method: The Buyer's Journey in the Age of Inbound Commerce

  1. 1. Mapping Mind & MethodThe Buyer’s Journey in the Age ofInbound Commerce#InboundCommerce+
  2. 2. Sam@MallikarjunanHead of eCommerce atHubSpot
  3. 3. DannyEssnerMarketing atMagento
  4. 4. Ask questions at any time:Use hashtag#InboundCommerceUse theQuestions Panel
  5. 5. Price competition isn’tworking anymore –there’s alwayssomeone willing tomake less moneythan me. What can Ido?
  6. 6. The fundamentalnature of relationshipsbetween buyers andsellers has changed.Well, the buyers havechanged – we’re stillcatching up.
  7. 7. The Buyer’s Journey
  8. 8. So easy, pretty, and simple to understand, ain’t it?The Conventional LinearBuying Process
  9. 9. Getting FancyTying methods to the phases
  10. 10. Reality is more complicated:The inbound relationship lifecycle
  11. 11. Reality is more complicated:The inbound relationship lifecycle– Missing key phases ofthe buying cycle andmarketing process– Considers “Influencers”an end-state– Considers “Buyers” andend-state
  12. 12. It’s not an end-stateIt’s an infinite loop
  13. 13. This breaks the classiceCommerce Funnel
  14. 14. eCommercemarketers are late tothe game – alwaysfocused on the sale. Ifyou’re waiting until thecustomer is ready tobuy to engagethem, you’ve alreadylost them.
  15. 15. So we started converting peopleearlier
  16. 16. And we realized thatrepeat business is key
  17. 17. We even targetedour evangelists
  18. 18. Let’s notovercomplicate things– but let’s respect thatthe relationshipbetween buyer andseller is morecomplex. Give peoplemore credit.
  19. 19. What is Inbound Marketing?
  20. 20. Instead of interruptingexperiences people love…Inbound Marketing is…Inbound marketing focuseson creating them.
  21. 21. #InboundCommerce is about creating an end-to-enduser experience that people love.#Smarketing is aligning sales (e.g. @Magento) withmarketing (e.g. @HubSpot) so you can make decisionsbased on the whole picture.Lazy Tweets
  22. 22. It All StartsWithBuyer Personas
  23. 23. Know YourCustomer
  24. 24. Narrative Buyer PersonasUses psychographicdimensions to predictbehavioral responsesComputerized Buyer ProfilesUses automated numericcorrelations to predictbehavioral responsesCustomer Cohort Analysis Methods
  25. 25. How many personas should a company have?Multiple Persona Disorder
  26. 26. How many personas should a company have?Short answer: As many as needed andas few as possible.Multiple Persona Disorder
  27. 27. Buyer Personas tell us whoour customer is: What makes anexperience they’ll love What influences theirbehaviors
  28. 28. Customer ExampleCould you write ablog article afterlooking at this?Could you craft apersuasive emailwith this info?Could you define aqualifying question toidentify Samamongst the crowd?
  29. 29. meetcharlie.
  30. 30. • Age: 25• Gender: Male• Income: $77,000• Sites he visits: BostInno, NYTimes, Gizmodo• Social Accounts:Twitter, LinkedIn, Facebook• Likes: Marketing, Star Wars, tech,gadgets, etc.Computerized Buyer Profile
  31. 31. Narrative Buyer PersonaNarrativeBackstory:Choosy Charlie is a 29 year oldmarketing manager for a softwarecompany in Cambridge Mass.Charlie has an MBA from Sloanat MIT. His favorite hangout isCourtside Karaoke bar. Charlie isan Android guy – Googlebasically owns his life. He’ll befirst in line to buy Glass. He wasraised from birth to be a GreenBay Packers fan. He’s technicallysavvy as a user but doesn’t knowthe jargon (though he won’t admitit).PsychographicDimensions:• What he’s looking for:• HDTV (product)• Better experience (emotion)• Pain Points:• Uninformed about specs• Short on time• Communication Preferences:• E-mail (short, no graphics)• Twitter @replies• Decision influencers:• Friends, “expert” advice• Responsiveness to humor:• Very receptive• Responsiveness to urgency:• Not receptive
  32. 32. Anonymous, generic transactionsIn gray we’ll talk about what themarketer’s engagement withCharlie looks like in each Phase.We’ll includetools, tactics, channels, metrics, and more.In white we’ll narrate Charlie’sJourney on his way to purchasinghis HDTV.We’ll talk about what factors of thebuyer persona affect each phase.
  33. 33. This is the bigweakness forsellers focusing onmarketplaces – therelationship you’rebuilding is with themarketplace – notyour company.
  34. 34. A lasting, valuable relationshipHi! I’m Charlie! I havethings I love and hate. Ihave vague personalgoals.Hi! I’m Corey, head ofHDTV Product Marketingfor Fakasonic. I haveclear business goals.
  35. 35. You’ve already lostthe battle for theone-night-standcustomer todiscount and long-tail inventory sites.But they wouldn’thave been loyal toyou anyways. Youdeserve to beloved.
  36. 36. At this point, Corey knows Corey prettywell: Primary marketing goal: Audiencebuilding Content types: Blogs, share-bait Key Metrics: Reach, Net-New ContactsCorey only know Charlie as a friend of afriend: General Interests “Talking About”Relevance PhaseThe largest bucket, the RelevancePhase includes anyone who could beinterested in or affected by yourproduct.
  37. 37. Corey’s job is to create content that willattract Charlie, either through organicsearch results social referrals. General topic blog articles Visual content Social interaction/monitoring Leveraging promotersRelevance PhaseI likesports!The largest bucket, the RelevancePhase includes anyone who could beinterested in or affected by yourproduct.
  38. 38. Corey’s job is to create content that willattract Charlie, either through organicsearch results social referrals. General topic blog articles Visual content Social interaction/monitoring Leveraging promotersRelevance PhaseI likesports!The largest bucket, the RelevancePhase includes anyone who could beinterested in or affected by yourproduct.
  39. 39. Moving between phasesTo move Charlie from the Relevance Phase to the Awareness Phase, Corey needs tocreate and share an aspirational content experience that helps Charlie realize what hislife as a sports enthusiast could be like.I likesports!I wish I couldsee the gamebetter.
  40. 40. Moving between phasesTo move Charlie from the Relevance Phase to the Awareness Phase, Corey needs tocreate and share an aspirational content experience that helps Charlie realize what hislife as a sports enthusiast could be like.I likesports!I wish I couldsee the gamebetter.
  41. 41. Awareness PhaseThe Awareness Phase of the buying cyclestarts when Charlie has identified –become aware – that he has a pain pointto begin with. In this case, Charlie hatesthat his old, tiny, yet somehow still bulkyTV “sucks”. Primary Marketing Goal: Attract problem-sensitive traffic, and/or build problemawareness Content Types: Blogs, visualcontent, early-stage downloadablecontent Key Metrics: Website Traffic, NetPromoter Score, Product/FeatureAwareness Surveys, Pre-TransactionalConversions
  42. 42. Moving between phasesTo help Charlie move from the Awareness Phase to the Research Phase of his buyingcycle, we need to help educate Charlie so he can articulate his desires and know whatfactors or features are relevant to them.I wish I couldsee the gamebetter.
  43. 43. Moving between phasesTo help Charlie move from the Awareness Phase to the Research Phase of his buyingcycle, we need to help educate Charlie so he can articulate his desires and know whatfactors or features are relevant to them.I wish I couldsee the gamebetter.I wish my TV had abetter contrast ratioand definition.
  44. 44. Research PhaseWe’ve been told since we were kids to“look before we leap”. Every product, nomatter how small or large, involves somelevel of research. Primary Marketing Goal: Position specificFakasonic HDTV’s as solutions Content Types: Blogs, visualcontent, buyer’s guides, featureguides, etc. Key Metrics: Website Traffic, NetPromoter Score, Product/FeatureAwareness Surveys, Pre-TransactionalConversions
  45. 45. Research PhaseThanks to the exposure I’ve had toFakasonic’s inbound marketing, I’mfamiliar with them. They’ve also given mesomething valuable without asking muchin return through their “Football Fan’sGuide To Find Fellow Fans”. Primary Marketing Goal: Position specificFakasonic HDTV’s as solutions Content Types: Blogs, visualcontent, buyer’s guides, featureguides, etc. Key Metrics: Website Traffic, NetPromoter Score, Product/FeatureAwareness Surveys, Pre-TransactionalConversions
  46. 46. Ethos: The Appealof classical rhetoricthat states that theauthority orcredibility of thespeaker has a directimpact on thewillingness of theaudience to beinfluenced by themessage.
  47. 47. Research PhaseCorey’s not just building her contactlist, she’s generating predictable futuresales revenue that she can analyze andoptimize:
  48. 48. Moving between phasesTo move Charlie from the Research Phase to the Comparison Phase, Corey needs tocreate content that helps Charlie define and articulate his wants and needs.I wish my TV had abetter contrast ratioand definition.
  49. 49. Moving between phasesTo move Charlie from the Research Phase to the Comparison Phase, Corey needs tocreate content that helps Charlie define and articulate his wants and needs.I’m trying to decidebetween aFakasonic VT30and a FonyBraavos TV…I wish my TV had abetter contrast ratioand definition.
  50. 50. Corey knows a fair bit about Charlie’sbehaviors on her site as well as the personasegmentation questions she asked when hedownloaded his eBook.She can send him content that helps himmake decisions.Comparison PhaseOnce Charlie has a fair grasp on the hiswants and needs, he can start to compareoptions. He might be comparing yourproduct to a competitor’s, or even justcomparing product options that you sell.
  51. 51. Comparison Phase“What is simple and obvious to you may be mindblowingly amazing to your customers.” – Tom Schwab(@TMSChwab)
  52. 52. This is typically the earliest that manyeCommerce marketers engagerelationships with blogs like “Why YouShould Buy a Fakasonic VT30” or biddingon competitor’s product keywords in PPCComparison Phase
  53. 53. Note that Buyer’s Guides and other late-stage content will have a different value ofpipeline revenue than earlier stage content.Analyze it separately to measure yourmarketing team’s effectiveness in thisphase.Comparison Phase
  54. 54. Moving between phasesTo move Charlie from the Comparison Phase to the Intent Phase, Corey has to help andempower Charlie to make decisions between his multiple options.I’m trying to decidebetween aFakasonic VT30and a FonyBraavos TV..
  55. 55. Moving between phasesTo move Charlie from the Comparison Phase to the Intent Phase, Corey has to help andempower Charlie to make decisions between his multiple options.I’m trying to decidebetween aFakasonic VT30and a FonyBraavos TV..I want to buy aFakasonicVT30
  56. 56. In the Comparison Phase, Coreycaptured information about what reallymatters to Charlie and when he’splanning to make a move. Now she canleverage that.Intent PhaseIn the intent phase, Charlie knows whathe wants to buy. Now he just has todecide when and from whom.
  57. 57. Moving between phasesFor Charlie to take that final leap from the Intent Phase to the Purchase Phase, Coreyhas to make sure that trust, logical, and emotional considerations have all beenaddressed.I want to buy aFakasonicVT30
  58. 58. Moving between phasesFor Charlie to take that final leap from the Intent Phase to the Purchase Phase, Coreyhas to make sure that trust, logical, and emotional considerations have all beenaddressed.Awesome! Iown aFakasonicVT30!I want to buy aFakasonicVT30
  59. 59. Logos: The appealof rhetoric thataddresses logicalconcerns, such asfunctionality andprice.
  60. 60. Logos: The appealof rhetoric thataddresses logicalconcerns, such asfunctionality andprice.Ah, but what ofPathos – thoseemotional concernsthat guide ouractions so strongly.
  61. 61. A sale is not the resultof a magical closingmarketing tactic, it’sthe inevitable result ofa well-designed andproperly executedbuyer educationprocess.
  62. 62. The purchase process contains within it allthe normal concerns that eCommerce hasfocused on – trust seals, easy checkoutprocess, shipping costs, fulfillment, etc.Purchase PhaseThat magical moment when Charlie goesfrom being a Pre-Transactional Contact tobeing a customer.
  63. 63. The transaction is justthe first kiss – it’s thestart of the long andsometimes rocky roadthat lasting relationshipsare built on.
  64. 64. All of Corey’s activities and tools to this pointadd up to the Cost Of Customer Acquisition
  65. 65. Now her focus shifts to increasing Charlie’sLife Time Value
  66. 66. eCommercemarketers are goingto have to stopthinking in terms ofCOCA:ASP and startthinking like SaaScompanies –COCA:LTV. Thatsecond half being themost important.-Matt Lauzon, former CEO @Gemvara
  67. 67. The Fundamentals ofeCommerce eConomicsHave changed forever
  68. 68. Moving between phasesTo move Charlie from being a one-night-stand to having a long term relationship whereCharlie purchases again and again, Corey needs to build ongoing value by getting toknow him better and providing even more highly targeted content around more of hisdesires..Awesome! Iown aFakasonicVT30!
  69. 69. Moving between phasesTo move Charlie from being a one-night-stand to having a long term relationship whereCharlie purchases again and again, Corey needs to build ongoing value by getting toknow him better and providing even more highly targeted content around more of hisdesires.I wish I couldhear the gamebetter…Awesome! Iown aFakasonicVT30!
  70. 70. Re-Purchase PhaseIt’s an infinite loop - a never ending cycle. Starting arelationship is easy, growing and maintaining it is hard.
  71. 71. Moving between phasesFor Charlie to go from being a customer to being a promoter, he has to be delighted.Proactive customer service, solving problems proactively, and creating content that’suseful to Charlie and makes his life easier will encourage him to recommend you.I’ve purchasedfrom Fakasoniconce or twice.
  72. 72. Moving between phasesFor Charlie to go from being a customer to being a promoter, he has to be delighted.Proactive customer service, solving problems proactively, and creating content that’suseful to Charlie and makes his life easier will encourage him to recommend you.I’ve purchasedfrom Fakasoniconce or twice.I actively recommendFakasonic when Ican.
  73. 73. Corey needs to help Charlie has apersonified relationship with Fakasonic andactively remain engaged in his life as abrand.Promotion PhaseCharlie “loves” you – and he’s willing tohelp you grow as a business.
  74. 74. “But I get my business throughword-of-mouth…”…there’s a math for that!On a scale of 1 to 10 (one being very unlikely and 10 being verylikely), how likely are you to recommend the Fakasonic VT30 to a friendlooking to purchase a new TV?
  75. 75. Average NPS
  76. 76. Im convinced that in price-competitiveindustries, eCommercecompanies need to positionthemselves in their customersminds as the group of peoplewho can help them with theirneeds and questions (not justabout the companys productsbut about the industry as awhole – perhaps even helpingthem with competitorsproducts) and that ifsuccessful, sales will follow. ButI think Im in the minority at ourcompany in that conviction.<grin>
  77. 77. Key Takeaways
  78. 78. Define your buyer personas using a narrativeDefine what characteristics or data identifies yourcustomers in different phasesTarget the right content, engagement, and experience topeople in each phaseBe sure you’re tracking the right metrics in each phaseCalculate and track your LTV:COCA and segment bybuyer personaWhat can you do?
  79. 79. You can request a free eCommerce Marketing Assessment by going towww.HubSpot.com/eCommerceConfused? Excited? Ready to go?And don’t forget to download Magento’s Ebook:http://bit.ly/MagentoEbook
  80. 80. THANK YOU
  81. 81. QUESTIONS?

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