Online retailer Expo - How the right performance program can propel online retail growth v1.0


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In the increasingly competitive e-retailing environment, performance marketing (where you only pay on the results achieved) is a cost-effective marketing tactic to drive traffic, generate sales and build long-term stability and awareness. From affiliate programs to e-coupons and shopping comparison websites, this session will guide you through the performance marketing landscape, what type of programs suit online retail, traps to avoid and how to set up a solid reward strategy to ensure maximum results

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  • BasiaBorysewicz currently works as the SMB Online Marketing Manager for Dell Australia and New Zealand.  She is responsible for various vehicles such as search, affiliates, display, social media and email. She also drives various innovative projects to ensure Dell provides best of breed customer experience. Previously, Basia worked for major brands such as Visa International, News Limited and Sensis.She completed her Master of Commerce (Marketing) degree at UNSW and was invited to present at the Australian and New Zealand Marketing Academy international conference on her thesis topic in the area of consumer behavior.Follow BasiaVisit BasiaBorysewicz's company, Dell Australia & New ZealandBasia's PresentationsPerformance Marketing: How the Right Program Can Propel Online Retail Growth
  • AustraliaRewards and Directories, which includes comparison shopping websites, accounted for about 10% of visits to online shopping sites in Australia. [Source: IAB, March 2009] USA 40% of customers online use Shopping Comparison websites. This has risen by 5% in Q4 2008, compared with Q4 2007. [comScore via Econsultancy Blog, February 2009] 34% of UK internet users use Shopping Comparison websites
  • More than 20% of US Consumers Use Digital Coupons: Over 45 million US consumers used digital coupons in 2009, an 18.4% increase from 38 million in 2008. [Source: Growth of Digital Coupons, Coupons inc., February 2010]  Wealthy, Educated Consumers Use Online Coupons: consumers who printed digital coupons in 2009 had an average household income of $97,000, 23% higher than the average household income of about $79,000. [Source: Growth of Digital Coupons, Coupons inc., February 2010]  65% cite the web as important or very important in making buying decisions, up an impressive 50% over the past year. [comScore via Econsultancy Blog, February 2009]  53% of consumers are using coupons more often, with 29% of consumers surveyed using online coupon sites to cut shopping expenses. [comScore via Econsultancy Blog, February 2009]
  • 31% of online coupon users started using them in the last 12 months. [Source: Couponstar via InternetRetailing, October 2009]  58% of consumers are more likely to visit online grocery stores or Fast-Moving-Consumer- Goods (FMCG) websites if a coupon is available. [Source: Couponstar via InternetRetailing, October 2009]  46% of internet users surveyed by Couponstar said that coupons influence them to try brands they wouldn't normally buy. [Source: Couponstar via InternetRetailing, October 2009]
  • P & G the world’s largest FMCG advertiser delivers 57M coupons per year in the US alone Procter & Gamble, the largest US advertiser, said recently that it was "shifting funds, where effective, to coupons and consumer promotions that deliver better value". The group has been battling to stop customers shifting to lower-cost private label rivals UK 2009 online sales are £38 billion (€42.7 billion) or 9.5% of UK retail trade (+12% on 2008).The Centre for Retail Research 2010, January 201084% of consumers said they were more likely to check online for reviews prior to making a purchase compared to twelve months ago, according to a recent survey by Brand Reputation (Retail Bulletin, October 2009)Retail Bulletin as cited by, October 2009In Europe, laptop ownership is driving greater media convergence – 36% of Europeans use the internet whilst watching TVEIAA, March 2010Of Australia’s internet users, 49% are online while watching TV and 39% listen to the radio while online. billion internet users worldwideInternet World Stats as cited by, September 2009Global Ad Spend estimates:2009: £243.2bn2010: £248.5bn2011: £258.6bn2012: £272.2bnThe UK e-commerce market will be worth an estimated €48bn during 2010 [Source: CRR/Kelkoo report, January 2010]  Online sales now account for almost 10% of total retail sales in the UK [Source: CRR/Kelkoo report, January 2010] USA 58% of respondents report using an online coupon when shopping for products or services in their local area in the past year. [Source: Online Media Use for Local Shopping, BIA/Kelsey and ConStat, February 2010]46% of internet users surveyed by Couponstar said that coupons influence them to try brands they wouldn't normally buy. [Source: Couponstar via InternetRetailing, October 2009]
  • P&G's "eStore" opening will harness a formidable FMCG sampling strategy - P&G's Chief Executive Bob McDonald said last August that the company wanted to increase its online sales "substantially" over the next few years. Online sales accounted for about $500 million, or 0.6 percent, of P&G's fiscal year 2009 of $79 billion. P&G plans a full scale launch this spring, after a pilot test with 5,000 consumers starting in the next few weeks.
  • Marketing tactics come and go, but no matter what business you’re in, one thing remains a constant: Customers love coupons. Thanks to the increase in the number of Americans online (more than 70 percent of the population), consumers are embracing online coupons as a quick and easy alternative to spending an entireSunday clipping them from the newspaper.Since 2005, online coupon usage has grown 39 percent, according to Simmons/Experian Research and Coupons Inc.; and businesses are cashing in on the myriad ways online coupons can be used to reach consumers: e-mail that provides a printable coupon for $5 off in-store, banner ads that offer a 10 percent discount for new customers, or e-newsletters that offer a promotional code for free shipping. Online coupons are even going mobile with companies such as Cellfire that allow you to target customers via text messaging.With so many avenues to reach consumers, it’s no wonder online coupons are growing in popularity. Here are three ways your business can use online coupons to pump up sales and create loyal customers.Increase SalesCoupons do more than just attract bargain shoppers; they can also increase your average transaction size. Incentives such as free shipping for orders over $50, for example, encourage customers to spend more per purchase than they normally would. You can also use an attractive e-mail offer to generate buzz beyond your usual customer list. An e-mail with a printable coupon for 25 percent off for friends and family, for instance, will quickly be forwarded to everyone in your customers’ address books, allowing you to reach potential customers not previously familiar with your business.Attract and Keep Loyal CustomersAlmost 58 percent of online coupon users believe that companies that offer coupons care about keeping them as customers, according to the survey by Simmons/Experian Research and Coupons. Entice new customers with coupons that offer discounts for first-time purchases. An easy way to determine new customers is to have them create an account before they can make a purchase. More than 70 percent of online coupon users say they would provide their e-mail addresses and first and last names if the value of the coupon is at least $2. The information provided in their accounts can then be used to send additional coupons and offers in the future. By rewarding their repeat business, you’ll build a loyal customer base that will generate even more customer referrals.Enhance Your MarketingOnline coupons are an easy way to pump up your marketing and advertising efforts. More than 70 percent of online coupon users say they’re more likely to open an e-mail if a coupon is offered, and 64 percent are more likely to click a banner ad or search a listing if they know a coupon is offered. By pairing your marketing efforts with a coupon discount, you’ll improve customer response.No matter what your objective is, online coupons can help you achieve it. Retail locations and e-commerce sites alike can cash in on the increased popularity of online coupons by adding them to their marketing efforts. Customers will love the discount, and businesses will love the response.
  • Online retailer Expo - How the right performance program can propel online retail growth v1.0

    1. 1. Performance Marketing: How the Right Program Can Propel Online Retail Growth<br />
    2. 2. 12 years online experience<br />2<br />
    3. 3. 7 years performance history<br />3<br />
    4. 4. 7 years affiliate history<br />4<br />
    5. 5. 7 years display history<br />5<br />
    6. 6. 7 years search history<br />6<br />
    7. 7. = ++$100’s of Millions in sales<br />7<br />
    8. 8. Last click cookie wins<br />
    9. 9. Universal Tracking technology<br />De-duplication across all channels<br />Affiliate Marketing<br />
    10. 10. We measure / understand path to conversion analysis<br />
    11. 11. Dell’s Current Performance<br /><ul><li>One in four sales for Dell are driven by affiliate performance</li></ul>11<br />
    12. 12. Return on Advertisement Spend by Channel<br />Affiliate is 800% more cost effective than Display<br />Affiliate is 35% more cost effective than Search<br />800%<br />12<br />
    13. 13. Dell’s Current Performance<br />13<br />
    14. 14. 14<br />
    15. 15. Affiliate Content<br />
    16. 16.
    17. 17.
    18. 18.
    19. 19. Affiliate Loyalty<br />
    20. 20.
    21. 21.
    22. 22.
    23. 23. Shopping Comparison<br />
    24. 24.
    25. 25. XML driven feeds<br />
    26. 26.
    27. 27.
    28. 28. Shopping Comparison Reach<br />Source: Econsultancy - E-commerce Statistics Compendium May 2010<br /><br /><br /><br />ComScore state of internet APAC<br />
    29. 29. Affiliate Coupons<br />
    30. 30. Stand up if you have a bought online in the last 12 months?<br />?<br />30<br />
    31. 31. Stay standing if you looked for an online coupon before making a purchase?<br />?<br />31<br />
    32. 32. Australian coupon trends<br />32<br />
    33. 33. 100% increase in 2009<br />Forecast to rise a further 20% in 2010 <br />Australian coupon trends<br />33<br />
    34. 34. USA coupon trends<br />34<br />
    35. 35. S<br />More than 20% of US Consumers use digital Coupons: Over 45 million <br />[Source: Coupons inc., February 2010] <br />35<br />
    36. 36. UK voucher trends<br />36<br />
    37. 37. 58% of consumers are more likely to visit online grocery stores or Fast-Moving-Consumer- Goods (FMCG) websites if a coupon is available. <br />[Source: Couponstar via InternetRetailing, October 2009] <br />37<br />
    38. 38. Canada coupon trends<br />38<br />
    39. 39. Canada coupon trends<br />39<br />
    40. 40. Average Transaction Value of Coupons Vs Vs PPC<br />40%<br />11%<br />18%<br />12%<br />17%<br />23%<br />Source: dgm Insights Q4 Consumer Electronics<br />
    41. 41. Affiliate Makeup DHS and SMB<br /><ul><li>YoY 30% Increase in contribution from Coupons
    42. 42. YoY 4% increase in contribution from Shopping comparison</li></li></ul><li>Dell’s coupon sites<br /><ul><li>Daily unique users 130,000+ MonthlySource Google Website Trends
    43. 43. Page Impressions 4M+ impressions</li></ul>42<br />
    44. 44. Dell’s coupons sites<br />43<br />
    45. 45. 44<br />
    46. 46. 45<br />
    47. 47. Existing Gillette users cut through online<br />$2 Off!<br />
    48. 48. 7 Rules for a successful coupon campaign strategy<br />47<br />
    49. 49. Rule1:<br />Use coupons on high margin products<br />48<br />
    50. 50. 49<br />
    51. 51. 50<br />
    52. 52. 51<br />
    53. 53. 52<br />
    54. 54. 53<br />
    55. 55. 54<br />
    56. 56. Rule2:<br />Use X% off coupons<br />55<br />
    57. 57. X% off when you spend over $Y<br /> Make sure that X% off $Y gives you an increased Nett Margin than your Average Order Margin<br /> $Y Nett Margin – (X% of $Y) ≥ Average order nett margin<br />56<br />
    58. 58. Rule3:<br />Use coupons for upselling<br />57<br />
    59. 59. 58<br />
    60. 60. Rule4:<br />Plan for you coupons to go viral<br />59<br />
    61. 61. 60<br />
    62. 62. 61<br />
    63. 63. 62<br />
    64. 64. 63<br />
    65. 65. Day1<br />Day3<br />Day5<br />Day7<br />64<br />
    66. 66. 65<br />
    67. 67. 66<br />
    68. 68. 67<br />
    69. 69. Rule5:<br />Set expiry dates and unique identification to measure redemption<br />68<br />
    70. 70. 69<br />
    71. 71. 70<br />
    72. 72. Rule6:<br />Ensure your online checkout can reject inactive coupons<br />71<br />
    73. 73. 72<br />
    74. 74. Old and expired coupons are rejected<br />73<br />
    75. 75. Rule7:<br />Make sure that there are terms and conditions in place<br />74<br />
    76. 76. T&C’s<br />Limited to First 100 customers<br />End date dd/mm/2010<br />One purchase per customer<br />75<br />
    77. 77. Why we like coupons?<br />76<br />
    78. 78. 77<br />
    79. 79. Use coupons on high margin products<br />Use “X% off when you spend $Y”<br />Use coupons for upselling<br />Plan for you coupons to go viral<br />Ensure your online checkout can reject inactive coupons<br />Set expiry dates and unique identification to measure redemption<br />Always include Terms & Conditions for coupon use<br />78<br />
    80. 80. Appendix<br />
    81. 81. Conversion<br />Last click cookie wins<br />
    82. 82. Conversion<br />Email<br />But what channels influence the journey?<br />
    83. 83. BSD Search<br />25<br />Email<br />DHS Search<br />20<br />Affiliate text Links<br />Generic Search<br />Brand Search<br />Banner<br />15<br />Time (days)<br />Affiliate Banners<br />Natural Search<br />10<br />5<br />Conversion<br />
    84. 84. 25<br />20<br />Affiliate text Links<br />15<br />Time (days)<br />One in four sales attributed to affiliates. 40% of journeys are influenced by the channel<br />Affiliate Banners<br />10<br />5<br />Conversion<br />
    85. 85. What is it worth?<br />2<br />$<br />1<br />B<br />AUD Source: <br />
    86. 86. What is it worth?<br />$<br />6.4<br />B<br />AUD Source: Econsultancy<br />
    87. 87. What is it worth?<br />0<br />$<br />2<br />5<br />M<br />AUD retail only<br />
    88. 88. What is it worth?<br />2<br />2<br />$<br />B<br />AUD<br />