Internet Marketing Practices Week 5: Retaining Customers Alan Chen, 2011
Methods to Retain Customers <ul><li>Customer Service
Personalization & Loyalty Program </li><ul><li>OLAP (Online Analytical Processing)
CRM </li></ul><li>Database Marketing </li><ul><li>Email </li></ul></ul>
Customer Service <ul><li>Good customer service can </li><ul><li>Increase conversion
Retain customers
Generate more sales
Bring new customers </li></ul></ul>
Personalization & Loyalty Program <ul><li>Especially important in the digital world due to: </li><ul><li>Relatively low cost
Provide what you need without search
Encourage you to spend more, happily </li></ul></ul>
 
 
<ul><li>It requires different techniques to do it seamlessly (remember the “time” issue in web usability?)
Though the real story is more complicated, we can use a simple case as an example... </li></ul>
<ul><li>Maybe you have a similar experience in a glasses store... </li></ul>Birth date: Jan-1960 Jan 1 Alan Chen Jason Lin...
<ul><li>Each customer has a historical purchase record, which is good in 1-1 service, but... </li></ul><ul><li>Don't know ...
Who are customers visited in last 3 months?
Who spend more than 10,000 in your store? </li></ul>Name: Alan Chen Lefty eye: 100+ Right eye: 200+ First time visit: 12/1...
<ul><li>Solution? Use different indexes: </li><ul><li>Brand of glasses
Glasses frame material
Customer demography
Money spent </li></ul><li>In reality? Time-consuming, wasting customer's time </li></ul>
<ul>Multi-dimensional Model is Designed  to Effectively Answer These Questions </ul>Who are most valuable customers? The a...
<ul><li>What else you can do when you have timely data? </li><ul><li>More targeted cross/up-selling
More accurate “Buy also” recommendation
Customer-centric recommendation </li><ul><li>Users have the same profile interested in...
Special discount in the birthday month </li></ul></ul></ul>
Repeat Purchase <ul><li>Sounds negative you are the one being talking into making repeat purchase...
Not necessarily if it is... </li><ul><li>Insurance renewal
Something before you ran out of it, plus good price or service </li></ul><li>Sell to the right person at the right time </...
Database Marketing <ul><li>Based on purchase behavior to deliver message </li><ul><li>e.g. purchased IC3 but haven't upgra...
e.g. interested in animation creation but haven't purchase CTA </li></ul><li>Or location-based, age-based, etc. in combina...
e.g. Taipei residents who are over 20 years old </li></ul><li>Email is one of the methods </li><ul><li>Low cost, low conve...
SMS, social network, etc. are more effective </li></ul></ul>
Send out Delivered Opened Interested Take action Email suffers from the poor conversion rate...
Send out Delivered Opened Interested Take action Issues and possible solution... <ul><li>Invalid email address </li><ul><l...
Out-of-date Email address  </li></ul><li>SPAM restriction </li><ul><li>You might be seen as a SPAMer even though you are n...
Send too much, send too fast
High bounce rate
And more... </li></ul></ul></ul>
Send out Delivered Opened Interested Take action Issues and possible solution... e.g.  5 Tactics that Can Improve Your Del...
Test, and test again (avoid break out code)
More testing: subject lines
Help your readers help whitelist you
Give them options (e.g. text version)
by  Benchmark.com </li></ul></ul>
Send out Delivered Opened Interested Take action Issues and possible solution... <ul><li>Do you use a sounding subject?
In different resolution? </li></ul>and different mail client...
Send out Delivered Opened Interested Take action Issues and possible solution... e.g.  5 Tips for Modern Email Subject Lin...
Ask a question
Call to action
Trial and error
Avoid spammy words
by  Benchmark.com </li></ul></ul>
Send out Delivered Opened Interested Take action Issues and possible solution... <ul><li>Subject testing by  Campaignmonit...
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Web Marketing Week5

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  • You don&apos;t need different brochures or 集點卡 Personalization Wish list “Buy also” “You may interested in...” Loyalty Program Credit card/flight club points
  • Changing focus from Transaction to Analytics We are trying to implement this year
  • - 王永慶的 repeat purchase
  • But the most important way we are using because we can&apos;t talk to customers in phone or in person That&apos;s why we use every way we can to collect email address
  • Invalid email address Convince them you won&apos;t spam them; do not trick them to become subscriber; opt-in instead of opt-out Ensure they will update their email (e.g. login account) SPAM restriction Users do not unsubscribe but mark spam instead Sent out frequency (flood control) Mail server setting IP address been banned
  • - too less information: they ignore the mail - too much information: they don&apos;t load the image and you don&apos;t know the open rate
  • can be used to achieve some desired goal can do what is needed.( 轉檔 ) user can rapidly start getting some work done how well users can use that functionality. easy to remember, high level of productivity is possible. make few errors during the use of the system subjectively satisfied when using it;
  • Web Marketing Week5

    1. 1. Internet Marketing Practices Week 5: Retaining Customers Alan Chen, 2011
    2. 2. Methods to Retain Customers <ul><li>Customer Service
    3. 3. Personalization & Loyalty Program </li><ul><li>OLAP (Online Analytical Processing)
    4. 4. CRM </li></ul><li>Database Marketing </li><ul><li>Email </li></ul></ul>
    5. 5. Customer Service <ul><li>Good customer service can </li><ul><li>Increase conversion
    6. 6. Retain customers
    7. 7. Generate more sales
    8. 8. Bring new customers </li></ul></ul>
    9. 9. Personalization & Loyalty Program <ul><li>Especially important in the digital world due to: </li><ul><li>Relatively low cost
    10. 10. Provide what you need without search
    11. 11. Encourage you to spend more, happily </li></ul></ul>
    12. 14. <ul><li>It requires different techniques to do it seamlessly (remember the “time” issue in web usability?)
    13. 15. Though the real story is more complicated, we can use a simple case as an example... </li></ul>
    14. 16. <ul><li>Maybe you have a similar experience in a glasses store... </li></ul>Birth date: Jan-1960 Jan 1 Alan Chen Jason Lin Emily Chen Jan 2 Kai Wang Sam Lin Name: Alan Chen Lefty eye: 100+ Right eye: 200+ First time visit: 12/1/2001
    15. 17. <ul><li>Each customer has a historical purchase record, which is good in 1-1 service, but... </li></ul><ul><li>Don't know popular combination (buy also)
    16. 18. Who are customers visited in last 3 months?
    17. 19. Who spend more than 10,000 in your store? </li></ul>Name: Alan Chen Lefty eye: 100+ Right eye: 200+ First time visit: 12/1/2001 Name: Jason Lin Name: Emily Chen Name: Kai Wang Name: Sam Lin
    18. 20. <ul><li>Solution? Use different indexes: </li><ul><li>Brand of glasses
    19. 21. Glasses frame material
    20. 22. Customer demography
    21. 23. Money spent </li></ul><li>In reality? Time-consuming, wasting customer's time </li></ul>
    22. 24. <ul>Multi-dimensional Model is Designed to Effectively Answer These Questions </ul>Who are most valuable customers? The average age of our customers Who are most popular products? What is the average price of products in this category? Who is the highest season of the store? What is the peak hour of the store? All Transactions Customer Product Time
    23. 25. <ul><li>What else you can do when you have timely data? </li><ul><li>More targeted cross/up-selling
    24. 26. More accurate “Buy also” recommendation
    25. 27. Customer-centric recommendation </li><ul><li>Users have the same profile interested in...
    26. 28. Special discount in the birthday month </li></ul></ul></ul>
    27. 29. Repeat Purchase <ul><li>Sounds negative you are the one being talking into making repeat purchase...
    28. 30. Not necessarily if it is... </li><ul><li>Insurance renewal
    29. 31. Something before you ran out of it, plus good price or service </li></ul><li>Sell to the right person at the right time </li></ul>
    30. 32. Database Marketing <ul><li>Based on purchase behavior to deliver message </li><ul><li>e.g. purchased IC3 but haven't upgrade to IC4
    31. 33. e.g. interested in animation creation but haven't purchase CTA </li></ul><li>Or location-based, age-based, etc. in combination </li><ul><li>e.g. Taiwan users who purchased iPad 1
    32. 34. e.g. Taipei residents who are over 20 years old </li></ul><li>Email is one of the methods </li><ul><li>Low cost, low conversion rate
    33. 35. SMS, social network, etc. are more effective </li></ul></ul>
    34. 36. Send out Delivered Opened Interested Take action Email suffers from the poor conversion rate...
    35. 37. Send out Delivered Opened Interested Take action Issues and possible solution... <ul><li>Invalid email address </li><ul><li>Fake address to avoid SPAM
    36. 38. Out-of-date Email address </li></ul><li>SPAM restriction </li><ul><li>You might be seen as a SPAMer even though you are not </li><ul><li>Improper mail server setting
    37. 39. Send too much, send too fast
    38. 40. High bounce rate
    39. 41. And more... </li></ul></ul></ul>
    40. 42. Send out Delivered Opened Interested Take action Issues and possible solution... e.g. 5 Tactics that Can Improve Your Delivery Rate <ul><ul><li>Spam checkers (by service provider)
    41. 43. Test, and test again (avoid break out code)
    42. 44. More testing: subject lines
    43. 45. Help your readers help whitelist you
    44. 46. Give them options (e.g. text version)
    45. 47. by Benchmark.com </li></ul></ul>
    46. 48. Send out Delivered Opened Interested Take action Issues and possible solution... <ul><li>Do you use a sounding subject?
    47. 49. In different resolution? </li></ul>and different mail client...
    48. 50. Send out Delivered Opened Interested Take action Issues and possible solution... e.g. 5 Tips for Modern Email Subject Lines <ul><ul><li>Keep it short
    49. 51. Ask a question
    50. 52. Call to action
    51. 53. Trial and error
    52. 54. Avoid spammy words
    53. 55. by Benchmark.com </li></ul></ul>
    54. 56. Send out Delivered Opened Interested Take action Issues and possible solution... <ul><li>Subject testing by Campaignmonitor.com </li></ul>
    55. 57. Send out Delivered Opened Interested Take action Issues and possible solution... <ul><li>What does it look like without images? </li></ul>
    56. 58. Send out Delivered Opened Interested Take action Issues and possible solution... <ul><li>What does it look like without images? </li></ul>
    57. 59. Send out Delivered Opened Interested Take action Issues and possible solution... <ul><li>They may look different between clients
    58. 60. Mails work in one client may not work in others </li></ul>Testing a variety of anchor links By Campaignmonitor.com
    59. 61. Send out Delivered Opened Interested Take action Issues and possible solution... <ul><li>Yes, it takes time and effort to test different environment
    60. 62. Yes, use graphic has less issue in different clients
    61. 63. Yes, graphic is more convincing than text
    62. 64. But sending out an email is just not enough </li></ul>
    63. 65. Strategy? Find a balance between too much or too less message before loading images Send out Delivered Opened Interested Take action
    64. 66. An example from Campaign Monitor, subject: Designing email for mobile: Our latest tips, tutorials and inspiration Send out Delivered Opened Interested Take action
    65. 67. A proper ratio between image and text, but... Send out Delivered Opened Interested Take action
    66. 68. Send out Delivered Opened Interested Take action Issues and possible solution... <ul><li>What is the action you want users to take?
    67. 69. Is the message clear and loud?
    68. 70. Do you offer an easy flow? </li><ul><li>Is the landing page align with the mail message?
    69. 71. Can users easily find the product they are interested in? </li></ul></ul>
    70. 72. Issues and possible solution... <ul><li>Link testing by Campaignmonitor.com </li></ul>Send out Delivered Opened Interested Take action
    71. 73. Issues and possible solution... <ul><li>Image testing by Campaignmonitor.com </li></ul>11.48KB 141.16KB (6-frame animated gif) 26% increase in click through Send out Delivered Opened Interested Take action
    72. 74. It also needs a proper balance... <ul><li>You have no more than 51 seconds to persuade the viewer. </li><ul><li>“ According to a study that tracked users' reading behavior, the average time allocated to an email after opening it was 51 seconds.” www.campaignmonitor.com </li></ul></ul>Send out Delivered Opened Interested Take action
    73. 75. Send out Delivered Opened Interested Take action Issues and possible solution... <ul><li>Timely tracking </li><ul><li>Newsletter response usually within 5 days
    74. 76. If the page didn't have proper GA code: </li><ul><li>Don't know the result of this event
    75. 77. Can't compare the result of each send out </li></ul></ul></ul>
    76. 78. Current Status <ul><li>Realitycheck: </li><ul><li>2~4 page/visits; 1.5~6 minutes </li></ul></ul>
    77. 79. Current Status <ul><li>Content Store: </li><ul><li>2.6~5 page/visits; 2~11 minutes </li></ul></ul>
    78. 80. Various Results (from 1/1/2010~)
    79. 81. We have started using external services <ul><li>Campaignmonitor.com
    80. 82. What they can offer? </li><ul><li>Increased open rate
    81. 83. Delivery time shorten from 1 week to 1 day
    82. 84. A/B testing
    83. 85. Screenshot in 20+ email clients (USD5/test)
    84. 86. Detailed report, e.g. open rate, most popular links </li></ul></ul>
    85. 88. Send out Delivered Opened Interested Take action Email suffers from the conversion rate... +10% +20% +5%
    86. 89. However, nothing is more important than “ a pleasant experience with the product”
    87. 90. <ul><li>The value of keeping one existing customer
    88. 91. = ? visitor to the site
    89. 92. not to mention “a happy customer”! </li></ul>
    90. 93. <ul><li>Usability Definition by Jacob Nielsen (1993): </li><ul><li>Usefulness (for fun or for production)
    91. 94. Effective to use (output formats for different purpose)
    92. 95. Easy to learn (Paint vs. Photoshop; demo project)
    93. 96. Easy to use (no surprise in each button or click)
    94. 97. Easy to remember (Dos vs. Windows)
    95. 98. Efficient to use (Performance, short-cuts vs. GUI)
    96. 99. Low error (Error Proof, auto-save)
    97. 100. Satisfying to use (I like it!) </li></ul></ul>
    98. 101. <ul><li>What's more? </li><ul><li>Provide proper help (built-in, tips, online help, support form)
    99. 102. Provide more information (default content thumbnail, links to content store)
    100. 103. Keep user updated (live update, check for update)
    101. 104. Lower switching cost (backward compatibility, backup setting)
    102. 105. … and so on. </li></ul></ul>
    103. 106. Each Contact Point is Critical <ul><li>Product itself is more effective than mails... </li></ul>Finally, topic review in 2 weeks
    104. 107. That's all for today, any question?
    105. 108. More material if you are interested in Customer Retention.. <ul><li>Email Design/Delivery </li><ul><li>http://www.campaignmonitor.com/blog/
    106. 109. http://www.benchmarkemail.com/blogs </li></ul><li>Microsoft Windows 使用者介面開發手冊 </li><ul><li>http://www.microsoft.com/mspress/taiwan/Pages/c0030_999.htm </li></ul></ul>
    107. 110. Feedback from last time <ul><li>Reallusion site </li><ul><li>Users can easily get lost, need better navigation and site map </li></ul></ul>
    108. 111. <ul><li>Developer (icontent) </li></ul>Clicking 'Guildline', title shows Submitting Content Clicking 'Submit', title shows Submitting Content for Sale Clicking 'iContent Submission', menu close and stay in this page
    109. 112. <ul><li>How to become PCD, VCD? </li></ul><ul><li>In the page behind 'How to Join?'
    110. 113. Does not help users who are already developers
    111. 114. Similar issues happen in other incremental developments
    112. 115. Need to consider existing users </li></ul>
    113. 116. <ul><li>Marketplace rating </li><ul><li>100 vs 10 people rated 5 star </li></ul></ul>
    114. 117. <ul><li>Marketplace module </li><ul><li>Button is far from the module title (tooltip added) </li></ul></ul>
    115. 118. <ul><li>Marketplace homepage </li><ul><li>Hard to go back to homepage </li></ul></ul>
    116. 119. <ul><li>Personal store </li><ul><li>Using anchor (#) to jump within the page
    117. 120. But there is no way to jump to top
    118. 121. Title in Directory does not match module title </li></ul></ul>
    119. 122. <ul><li>Personal store </li><ul><li>How to avoid too many pages in a module? </li></ul></ul>
    120. 123. <ul><li>Reallusion's air con </li></ul>Additional notes or icon
    121. 124. <ul><li>0=Off; 1=On (電子工程學)
    122. 125. On/Off text?
    123. 126. Straight line and break link (& bump) </li></ul>
    124. 127. What will we do next time? <ul><li>Week 6: Review
    125. 128. Exercise:
    126. 129. Find one email newsletter design (not limited to Reallusion) you like, and tell us why, it can be </li><ul><li>Creative subjects
    127. 130. Convincing message
    128. 131. Simple/beautiful layout
    129. 132. … or anything else </li></ul></ul>

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