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Wheelhouse DMG at GrowCommerce - not your father's search

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Learn about how optimizing to a ROAS target rather than a fixed budget can supercharge your online revenue. We show digital marketers how CRO can supercharge your PPC campaigns and how to drive improved AOV through loyalty programs.

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Wheelhouse DMG at GrowCommerce - not your father's search

  1. 1. Not your father’s search Three Keys to Best of Breed Acquisition Marketing
  2. 2. Who are these guys??? 7/20/2017 © Wheelhouse DMG 2017 2 Grow Conference / Not your father’s search Wheelhouse/dmg • Founded 125 years after AM Leonard • Digital Strategy, PPC, SEO, Analytics & Engineering • Based in Seattle, WA with clients all over the US (but not Ireland) Paul Weinstein • VP, Operations & Client Services • Likes neon
  3. 3. Who are these guys??? 7/20/2017 © Wheelhouse DMG 2017 3 Grow Conference / Not your father’s search • Founded in 1885 as a nursery • Added ecomm. to catalog about 10 years ago Jason Corpus • VP, Marketing & Corporate Strategy • This is not as cheesy a headshot as the first one we used • Knows a lot about marketing
  4. 4. 7/20/2017 © Wheelhouse DMG 2017 4 Grow Conference / Not your father’s search What do we mean by “Not your father’s search”?
  5. 5. Less like this…
  6. 6. More like this…
  7. 7. 7/20/2017 © Wheelhouse DMG 2017 7 What do you focus on first? Best of Breed Ecommerce Grow Conference / Not your father’s search
  8. 8. 7/20/2017 © Wheelhouse DMG 2017 8 Best of Breed Ecommerce Grow Conference / Not your father’s search
  9. 9. 7/20/2017 © Wheelhouse DMG 2017 9 Get your Bid Strategy right
  10. 10. 7/20/2017 © Wheelhouse DMG 2017 10 What is “Bid Strategy”? Grow Conference / Not your father’s search
  11. 11. 7/20/2017 © Wheelhouse DMG 2017 11 bid strategy [bid] [strat-i-jee] 1. the science and art of determining the business value of a keyword 2. a plan, method or series of keyword bidding decisions designed to maximize ROAS 3. calculations or algorithms used to achieve goals based on primary business KPIs Grow Conference / Not your father’s search
  12. 12. Ecommerce KPI Framework 7/20/2017 © Wheelhouse DMG 2017 12 Grow Conference / Not your father’s search LEVERS • Site infrastructure, responsiveness • Site speed • Site design • Conversion rate optimization • Offers LEVERS • Quality of traffic • Offers • Loyalty programs • Site design (cross- selling) LEVERS • Pay-per-click advertising • Search Engine Optimization • Marketing efforts • Emails • Catalogs • Outreach/Bloggers
  13. 13. Calculating the Value of a Keyword… 7/20/2017 © Wheelhouse DMG 2017 13 Grow Conference / Not your father’s search
  14. 14. More 7th grade math… 7/20/2017 © Wheelhouse DMG 2017 14 Grow Conference / Not your father’s search
  15. 15. A few substitutions… 7/20/2017 © Wheelhouse DMG 2017 15 Grow Conference / Not your father’s search
  16. 16. A few substitutions… 7/20/2017 © Wheelhouse DMG 2017 16 Grow Conference / Not your father’s search
  17. 17. A few substitutions… 7/20/2017 © Wheelhouse DMG 2017 17 Grow Conference / Not your father’s search
  18. 18. A few substitutions… 7/20/2017 © Wheelhouse DMG 2017 18 Grow Conference / Not your father’s search
  19. 19. 7/20/2017 © Wheelhouse DMG 2017 19 Grow Conference / Not your father’s search
  20. 20. Tada! 7/20/2017 © Wheelhouse DMG 2017 20 Grow Conference / Not your father’s search We used this formula to help us understand the value of each keyword
  21. 21. 7/20/2017 © Wheelhouse DMG 2017 21 Grow Conference / Not your father’s search Bid strategy Seeks the unique value for each search, based on time, audience, & context
  22. 22. Bidding to Value Grow Conference / Not your father’s search Bad Bidding Cost Revenue 227/20/2017 © Wheelhouse DMG 2017 Bidding Evaluation Method: Plot all non-brand keywords on a scatter plot revenue (y) vs. cost (x)
  23. 23. Bidding to Value Grow Conference / Not your father’s search Bad Bidding Good Bidding Cost Revenue Cost Revenue 237/20/2017 © Wheelhouse DMG 2017
  24. 24. Bidding to Value Grow Conference / Not your father’s search Bad Bidding Good Bidding Cost Revenue Cost Revenue 247/20/2017 © Wheelhouse DMG 2017 Scatter plot is clustered along ROAS slope
  25. 25. Bidding to Value Grow Conference / Not your father’s search Bad Bidding Good Bidding Cost Revenue Cost Revenue Slope = ROAS 257/20/2017 © Wheelhouse DMG 2017 Scatter plot is clustered along ROAS slope
  26. 26. Bidding to Value Grow Conference / Not your father’s search Bad Bidding Good Bidding Opportunity Cost Waste Cost Revenue Cost Revenue Slope = ROAS 267/20/2017 © Wheelhouse DMG 2017 Scatter plot is clustered along ROAS slope
  27. 27. Bidding to Value Grow Conference / Not your father’s search Bad Bidding Good Bidding Opportunity Cost Waste Cost Revenue Cost Revenue Slope = ROAS 277/20/2017 © Wheelhouse DMG 2017 Scatter plot is clustered along ROAS slope Any keyword below the ROAS line is costing more than it should, bids should be reduced
  28. 28. 7/20/2017 © Wheelhouse DMG 2017 28 Bid Strategy in Action Brand Non-Brand 31%Increase in revenue 754%Increase in ROAS 58%Decrease in spend 129%Increase in ROAS AML – May YoY GE – Jun YoY
  29. 29. 7/20/2017 © Wheelhouse DMG 2017 29 Grow Conference / Not your father’s search
  30. 30. Why Retailers should focus on ROAS 7/20/2017 © Wheelhouse DMG 2017 30 Grow Conference / Not your father’s search • Known ROI on PPC media • Maximizes profitable growth • Every PPC dollar is profitable • Forces team to understand value of every click
  31. 31. Why Retailers should focus on ROAS 7/20/2017 © Wheelhouse DMG 2017 31 Grow Conference / Not your father’s search • Known ROI on PPC media • Maximizes profitable growth • Every PPC dollar is profitable • Forces team to understand value of every click Don’t limit your growth by setting a fixed PPC media budget
  32. 32. Bid Strategy Health Check 7/20/2017 © Wheelhouse DMG 2017 32 Grow Conference / Not your father’s search If you have an enterprise bid management platform… • Check your change history • If you see bid adjustments like $0.25, $1.00 or $0.10, your bidding platform isn’t being utilized to its potential • You should also see intra-day bid adjustments for time of day / day of week If you don’t use a bidding platform… • Make sure your team is managing Brand and Non-brand keywords separately and to different ROAS targets • Map your keyword performance on a Revenue vs Cost scatter-plot. If the result is a scatter, consider how you manage your bidding
  33. 33. 7/20/2017 © Wheelhouse DMG 2017 33 Best of Breed Ecommerce Grow Conference / Not your father’s search
  34. 34. The CRO multiplier
  35. 35. Factors that impact Conversion Rate 7/20/2017 © Wheelhouse DMG 2017 35 Grow Conference / Not your father’s search • Site design • Responsive design • Navigation design (faceted navigation) • Site speed • Page design (eg. CTA’s) • Offers/pricing • and more…
  36. 36. Mobile Site Speed! 7/20/2017 © Wheelhouse DMG 2017 36 Grow Conference / Not your father’s search Speed Top 3… Speed Index <3 sec @ 3G Total Requests < 80 requests Page Weight < 1.00MB 2 4 60 3% 2% 1% 0% 8 2.4 sec / 1.9% 3.3 sec / 1.5% 4.2 sec / <1% 5.7 sec / 0.6% Gardeners Edge 5.31 sec / 1.8% Load Time (Seconds) ConversionRate AM Leonard 5.73 sec / 1.2% AML/GE Mobile Site Speed and Conversion Rate, June 2017, Google Analytics Site Speed/Conversion Rate Data per mPulse Mobile Study For every second delay in mobile page load, conversions can fall by up to 20% Source: thinkwithgoogle.com20% In progress
  37. 37. The virtuous CRO-PPC cycle 7/20/2017 © Wheelhouse DMG 2017 37 Grow Conference / Not your father’s search Higher conversion rate = higher bid at same ROAS Higher bids = more traffic (same ROAS)
  38. 38. The virtuous CRO-PPC cycle 7/20/2017 © Wheelhouse DMG 2017 38 Grow Conference / Not your father’s search More traffic = more revenue Higher conversion rate = more revenue
  39. 39. The virtuous CRO-PPC cycle 7/20/2017 © Wheelhouse DMG 2017 39 Grow Conference / Not your father’s search More traffic = more revenue Higher conversion rate = more revenue
  40. 40. 7/20/2017 © Wheelhouse DMG 2017 40 Grow Conference / Not your father’s search Why is CRO so Important?
  41. 41. 7/20/2017 © Wheelhouse DMG 2017 41 Grow Conference / Not your father’s search
  42. 42. 7/20/2017 © Wheelhouse DMG 2017 42 Grow Conference / Not your father’s search
  43. 43. 7/20/2017 © Wheelhouse DMG 2017 43 Grow Conference / Not your father’s search
  44. 44. 7/20/2017 © Wheelhouse DMG 2017 44 Grow Conference / Not your father’s search
  45. 45. 7/20/2017 © Wheelhouse DMG 2017 45 Grow Conference / Not your father’s search
  46. 46. 7/20/2017 © Wheelhouse DMG 2017 46 Grow Conference / Not your father’s search
  47. 47. 7/20/2017 © Wheelhouse DMG 2017 47 Grow Conference / Not your father’s search Optimization reached, time to invest elsewhere
  48. 48. CRO in Action – Responsive Design 7/20/2017 © Wheelhouse DMG 2017 48 Grow Conference / Not your father’s search KPI Organic Paid Direct Traffic +20% -49% +22% Conv. Rate +25% +79% +24% AOV +22% +6% +3% Revenue +84% -3% +55% Mar – Jun 2017 compared to same period last year Responsive site launched Feb 2017
  49. 49. CRO Health Check 7/20/2017 © Wheelhouse DMG 2017 49 Grow Conference / Not your father’s search Check your site speed • https://developers.google.com/speed/pagespeed/insights/ Invest in CRO • If you give money to Google, invest in CRO • Just do it. Seriously.
  50. 50. 7/20/2017 © Wheelhouse DMG 2017 50 Best of Breed Ecommerce Grow Conference / Not your father’s search
  51. 51. Drive LTV through loyalty Drive LTV through loyalty
  52. 52. Example Loyalty Program 7/20/2017 © Wheelhouse DMG 2017 52 Grow Conference / Not your father’s search AM Leonard’s Pro-Plus Program Unassigned Customer U Unassigned Customer Ordering with PRO Plus PROU Assigned Customer Ordering via Account Manager A Assigned Customer Ordering via Web (PRO Plus) PRO A
  53. 53. The results so far… 7/20/2017 © Wheelhouse DMG 2017 53 Grow Conference / Not your father’s search 114% Increase 22% Increase 42% Increase Average # of Orders 1.58 3.38 4.79 1.30
  54. 54. The results so far… 7/20/2017 © Wheelhouse DMG 2017 54 Grow Conference / Not your father’s search 114% Increase 50% Increase 75% Increase AOV
  55. 55. 7/20/2017 © Wheelhouse DMG 2017 55 What if they’re not actually pros?
  56. 56. Driving LTV… 7/20/2017 © Wheelhouse DMG 2017 56 Grow Conference / Not your father’s search Address these first… • Great customer experience • Great products • Details like return policies Then do… • Loyalty programs
  57. 57. LTV Action Items 7/20/2017 © Wheelhouse DMG 2017 57 Grow Conference / Not your father’s search Create loyalty benchmarks Design programs to improve them
  58. 58. 7/20/2017 © Wheelhouse DMG 2017 58 Bid Strategy CRO LTV
  59. 59. 7/20/2017 © Wheelhouse DMG 2017 Things you should do Bid Strategy • Check your change history • Separate Brand and Non-brand keywords CRO • Have your site audited for Site Speed • Invest in CRO LTV • Set loyalty benchmarks • Create programs to improve them
  60. 60. For more detail on today’s presentation, visit: www.IheartROAS.com #IheartROAS 7/20/2017 © Wheelhouse DMG 2017 60 THANK YOU!

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