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#Winning More Customers With E-Commerce Offer Testing

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From the SMX West Conference in San Jose, CA March 13-15, 2018. SESSION: Winning More Customers With E-commerce Offer Testing. PRESENTATION: #Winning More Customers With E-Commerce - Given by Elizabeth Marsten, @ebkendo - CommerceHub, Senior Director, e-Commerce Growth Services. #SMX #34C

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#Winning More Customers With E-Commerce Offer Testing

  1. 1. #SMX #34C @ebkendo #WINNING MORE CUSTOMERS WITH E-COMMERCE OFFER TESTING Image: Getty Images
  2. 2. #SMX #34C @ebkendo § 11 years in the search industry – PPC, SEO, Social, Content – e-Commerce, Marketplaces § Speaker: SMX Adv/East/West, PPC Hero, Mozcon, Engage Elizabeth Marsten CommerceHub Senior Director, e-Commerce Growth Services Image: @ebkendo
  3. 3. #SMX #34C @ebkendo I hope you’re excited too Image: @ebkendo
  4. 4. #SMX #34C @ebkendo NORTH AMERICA’S LARGEST RETAILERS, MARKETPLACES AND SEARCH ENGINES DEMAND GENERATION ASSORTMENT EXPANSION WAREHOUSES, STORES, DROP-SHIPPERS, BRAND MANUFACTURERS DELIVERY NATIONAL CARRIERS, REGIONAL CARRIERS, LOCAL CARRIERS Image: CommerceHub Image: CommerceHub
  5. 5. #SMX #34C @ebkendo In 1887, the first coupon in the US was issued. What was it for? A. Ivory Soap B. Coca-Cola C. Bayer Aspirin D. Wright Brothers Flour Image: Getty Images
  6. 6. #SMX #34C @ebkendo Stand out Competition Find new customers Reward returning customers The psychology of getting a “deal” To race to the bottom Why Do We Do Offers?
  7. 7. #SMX #34C @ebkendo How Do You Decide What and When to Offer? § High margin items § High velocity selling items § Clearance § Challenge a competitor § Holidays § Seasonality § Make up your own event
  8. 8. #SMX #34C @ebkendo How Do You Define e-Commerce? Image: Getty Images
  9. 9. #SMX #34C @ebkendo Final price: $44.99 Should Offers Be the Same, Cross-Channel - .com Image: CommerceHub
  10. 10. #SMX #34C @ebkendo Should Offers Be the Same, Cross-Channel – Google PLA Final price: $36.28 Image: CommerceHub
  11. 11. #SMX #34C @ebkendo Should Offers Be the Same, Cross-Channel - eBay Final price: $35.99 Image: CommerceHub
  12. 12. #SMX #34C @ebkendo § Amazon will de-list any item offered for a lower price anywhere online by the seller § Walmart will de-list any item offered for more than 20% less anywhere online by any other seller § Jet will de-list any offer that is priced 25% or more above any other seller on Jet Pricing: Marketplaces
  13. 13. #SMX #34C @ebkendo Are You Competing Against Yourself? Image: Getty Images
  14. 14. #SMX #34C @ebkendo In 2015, Amazon spent $11.5 billion on shipping, while generating $6.5 billion. We All Want Free Shipping https://www.fastcompany.com/3061686/free-shipping-is-a-lie In 2016, a Walker Sands survey found that free shipping was the top factor that would make customers buy from e-Commerce sites more frequently: – 88% said free shipping was more persuasive than easy returns or same-day shipping.
  15. 15. #SMX #34C @ebkendo Paying for Free Shipping § Bake it into the cost of the item when… § Heavier/bulkier item § Final price is still competitive § Category dependent § Look for when “Free Shipping” is a filter on the channel § Low price, bulk or lightweight items = no. Put a minimum order in place.
  16. 16. #SMX #34C @ebkendo About 13% or $90 billion is expected to be returned through the end of February 2018 from$692 billion in holiday sales. Where do your returns end up? How does this effect your advertising or listing efforts later? The Cost of Returns Image: https://www.wsj.com/articles/what-stores-do-with-90-billion-in-merchandise-returns-1518777000
  17. 17. #SMX #34C @ebkendo The Google Retail Promotions Experience Today Images: CommerceHub 1. 2.
  18. 18. #SMX #34C @ebkendo Google Retail Promotions Images: CommerceHub 4.3.
  19. 19. #SMX #34C @ebkendo In Action: Google Retail Promotions $30 25% off $35 30% off Source: CommerceHub
  20. 20. #SMX #34C @ebkendo In Action: Google Retail Promotions Source: CommerceHub 20 offers
  21. 21. #SMX #34C @ebkendo Google Retail Promotions Recap § It’s really hard to test effect – there’s a lot of noise § If you do an offer during off-season or timing, the impressions or search volume may not be there to really know effectiveness § Overlapping promos makes it worse to measure or multiple offers can apply to multiple products § Keep track of the offer TYPE and how many of each kind you’re running
  22. 22. #SMX #34C @ebkendo Google Retail Promotions Recap § If you do more than one GRP on the same product, Google chooses which one to show § The better deals don’t necessarily perform better, it’s the lower barrier entry to deals that do – especially if your average AOV is on the lower end § If you don’t have system/feed fast enough to handle changes, disapprovals will be the bane of your existence § Do promos that have INVENTORY and won’t sell out in a day
  23. 23. #SMX #34C @ebkendo Bundle Up Image: CommerceHub
  24. 24. #SMX #34C @ebkendo Bundle Pros and Cons § Could be double exposure on the channel (good and bad) § Unique offering § Price would be higher for the bundle than a single item – may have a harder time surfacing up in SERPs if the searcher isn’t looking for a bundle specifically § Can get tricky if resellers or partners try matching on a per item basis
  25. 25. #SMX #34C @ebkendo Michael Kors – fewer discounts, limited inventory and assortment at department stores, closed stores, refreshed product line. Full year revenue forecast now at $4.66 billion from $4.59 billion Target: Cat & Jack – exclusive children’s clothing brand launched in 2016. $2 billion in revenue one year after launch Exclusivity – It’s an Offer too Source: https://www.reuters.com/article/us-michael-kors-results/michael-kors-sales-pick-up-as-full-price-strategy-pays-off-idUSKBN1FR1Q5 http://www.businessinsider.com/target-grows-private-brands-cat-and-jack-cloud-island-2017-8
  26. 26. #SMX #34C @ebkendo Share these #SMXInsights on your social channels! #SMXInsights § Define e-Commerce or have the conversation § Organize and track offers cross-channel § Bake in the cost of shipping where you can § Google Retail Promotions = meh on attributable lift § Bundle stuff § Have some exclusives
  27. 27. #SMX #34C @ebkendo LEARN MORE: UPCOMING @SMX EVENTS THANK YOU! SEE YOU AT THE NEXT #SMX

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